Investor Behavior: An Overview

Baker, H. Kent; Ricciardi, Victor

doi:10.1002/9781118813454.ch1

Cited by 29 publications

(37 citation statements)

References 25 publications

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“…In recent years, the rational actor model has been called into question by research in the nonbusiness fields of behavioral psychology, cognitive science, experimental philosophy, and others that demonstrate that human decision making is often far from rational (Gilovich, Griffin, & Kahneman, ; Kahneman, ). Even in business schools, the limitations of the rational actor model have been acknowledged by the rise of the new fields of behavioral finance (Baker & Ricciardi, ) and behavioral economics (Camerer, Loewenstein, & Rabin, ).…”

Section: Introductionmentioning

confidence: 99%

Behavioral Ethics and Teaching Ethical Decision Making

Drumwright

Prentice

Biasucci

2015

Decision Sci J Innov Edu

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Business education often renders students less likely to act ethically. An infusion of liberal learning in the form of behavioral ethics could improve this situation by prompting students to develop higher levels of professionalism that encompass ethics, social responsibility, self‐critical reflection, and personal accountability. More specifically, teaching behavioral ethics, which draws upon psychology, sociology, and related fields, can improve students’ ethical decision making in a manner that can lead to a more ethical climate in organizations and in society more generally. This article introduces key concepts of behavioral ethics, argues that teaching behavioral ethics can have a positive impact, discusses materials that can be used to teach those concepts, and addresses action‐research approaches to assessing the effectiveness of the instruction. There is significant evidence, though preliminary and incomplete, that teaching behavioral ethics is a promising new approach for improving the ethicality of students’ decisions and actions.

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Section: Introductionmentioning

confidence: 99%

Behavioral Ethics and Teaching Ethical Decision Making

Drumwright

Prentice

Biasucci

2015

Decision Sci J Innov Edu

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“…In truth, the fi rst type of agents are more inclined to accompany impressions of self-management and cognitive change and can also be capable of dealing with negative feelings in a way that allows them to maintain objectivity and pursue long-term objectives. Baker and Ricciardi (2014) confi rm these fi ndings, stating that experienced and mature investors know that success depends on controlling emotions and overcoming preconceptions. Th is helps them to avoid the typical errors of new investors related to excessive confi dence.…”

Section: Theoretical Frameworkmentioning

confidence: 88%

“…Th e studies from Baker and Ricciardi (2014) and Fenton-O'Creavy, Soane, Nicholson, and Willman (2011) present results that indicate that investor emotion is a critical factor in investment decision-making. Fenton-O'Creavy et al (2011) carried out a study with a sample of London investors in investment banks and observed that eff ectively regulating emotions appears to be a critical factor in successful investment and trading decisions.…”

Section: Theoretical Frameworkmentioning

confidence: 92%

“…One of the students showed more discomfort than the other, marking "extremely" for the following emotions: fear, tiredness, hostility, dissatisfaction, boredom, and sadness, with these fi tting into the negative emotions. Baker and Ricciardi (2014) confi rm that experienced and mature investors know that success depends on controlling emotions in order to avoid the typical mistakes of new investors.…”

Section: The Creations and Understandingsmentioning

confidence: 99%

“…An example of this were the metaphors created by the students who did not feel comfortable in the decisionmaking environment created by the course: "A sh out of water" and "Lost in a jungle full of snakes and lions that want to crush your heart", revealing a certain discomfort with the pressure, the competitive emotions, and mistakes that appeared in their decisions (Baker & Ricciardi, 2014). …”

Section: Final Remarksmentioning

confidence: 99%

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Behavioral finance and games: simulations in the academic environment

Torga

Barbosa

Carrieri

et al. 2017

Rev. contab. finanç.

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The contribution from this study lies in its reflection on the factors that influence market efficiency, which requires a multidisciplinary view to analyze the intervening factors that impact results of the financial system. It also contributes by reflecting on the need for new approaches for training professionals who will go on to work in financial and related areas and preparing them by using different financial analysis techniques; by reflecting on the fact that analytical practices are influenced by social, cognitive, and emotional aspects, enabling the students to be better prepared to act in the financial market; by presenting various technical possibilities and providing more comprehensive knowledge to choose the one that best suits the object of analysis and their preferences; and by reflecting on different ways of perceiving investment opportunities and risk, which can be expanded on in other studies on the segmentation of clients according to their preferences in the investor market. The aim of this study was to analyze how social and psychological aspects influenced the decisions involved in simulated trading operations. The relevance lies in its discussion of the philosophical and epistemological position in finance, which suffers from a vision that only focuses on the rationality of means and does not explain the anomalies verified in the financial market. The study originated from the application of a company game simulating the work of stock market trading desk operators, applied in the Stock Market Operations course and using fundamental, technical, and graphical techniques. The population was intentional and made up of undergraduate and graduate students from one of the four best Brazilian federal universities. The data analysis was performed by analyzing the content of the questionnaires applied and the journal entries made during participant observation.

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