Chapter 30: The Future of Behavioral Finance

Financial Behavior: Players, Services, Products, and Markets. H. Kent Baker, Greg Filbeck, and Victor Ricciardi, editors, 561-578, New York, NY: Oxford University Press, 2017.

Posted: 14 Jun 2017

See all articles by Michael M. Dowling

Michael M. Dowling

ESC Rennes School of Business

Brian M. Lucey

Trinity Business School, Trinity College Dublin; University of Sydney Business School; University of Economics Ho Chi Minh City

Date Written: June 1, 2017

Abstract

The future of behavioral finance necessitates that the research areas of behavioral corporate finance and investor psychology develop richer models of financial decision-making behavior. Behavioral corporate finance requires expanding the focus from chief executive officer characteristics to those of the entire top management team, and also involves greater understanding of organizational theory. A greater focus is needed on cross-cultural factors and how they interact with behavioral influences. Investor psychology needs a more comprehensive theory of the drivers of investor behavior and better data. This need is strong for investor sentiment research, which might offer the most potential to advance understanding of psychological influences on asset pricing. The chapter expands on these ideas and discusses an overall context of the future philosophical development of behavioral finance and the inevitable push for greater openness, replicability, and reliability in research.

Keywords: behavioral finance, behavioural finance, behavioral corporate finance, investor psychology, philosophy, reliability

JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41

Suggested Citation

Dowling, Michael M. and Lucey, Brian M., Chapter 30: The Future of Behavioral Finance (June 1, 2017). Financial Behavior: Players, Services, Products, and Markets. H. Kent Baker, Greg Filbeck, and Victor Ricciardi, editors, 561-578, New York, NY: Oxford University Press, 2017.. Available at SSRN: https://ssrn.com/abstract=2984934

Michael M. Dowling (Contact Author)

ESC Rennes School of Business ( email )

Rue Robert d'arbrissel, 2
Rennes, 35000
France

Brian M. Lucey

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

University of Economics Ho Chi Minh City ( email )

59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

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