Advances in Behavioural Finance and Economics

Edited by
October 2021
184 pages
  • ISBN978-3-0365-2111-4 (Hardback)
  • ISBN978-3-0365-2112-1 (PDF)

This book is a reprint of the Special Issue Advances in Behavioural Finance and Economics that was published in

Business & Economics
Computer Science & Mathematics

For quite a long time, financial decision-making has followed the traditional theory of finance. The traditional theory considers a given subject’s aversion to risk as an unchanging variable, and its basic principles include the fact that people choose from possible alternatives to maximize their expected profits. In 1979, Tversky and Kahneman introduced prospect theory, which states that people underweight outcomes that are merely probable in comparison with outcomes that are obtained with certainty. Further, the model considers that people generally discard components that are shared by all prospects under consideration.


Subsequently, behavioural finance theory introduced psychology behaviour science theory into finance in order to use its pioneering view to re-examine investment behaviour in financial markets. Therefore, behavioural finance holds important implications for the practice of financial management and innovation in finance and economics.


  • Hardback
© 2022 by the authors; CC BY-NC-ND license
behavioral finance; extreme weather; financial market openness; investment sentiment; MA-MSD method; QFII plan; world economy; nature of global crises; risks of the financial markets; leadership problem; indebtedness; behavioral factors; demographic factors; Malaysia; market orientation; international competition; business performance; marketing innovation; motivation; innovation strategies; exporters; manufacturing; marketing capabilities; bibliometric analysis; business innovation; strategic and financial management; earnings; innovation factor; age; gender; education; financial literacy; investment choices; herding behavior; investor sentiment; CSAD; quantile regression; Korean stock market; audit; communication; management; marketing; museum; risk; JEL Classification; G32; M31; M42; mergers and acquisitions behaviors; executive compensation incentive; beneficial distribution mechanisms; listed companies; GARCH model; Nifty Index futures; causal relation; volatility; volume; open interest; National Stock Exchange of India; financial knowledge; perceived risks; intention to invest; Saudi Arabian Stock Market; women entrepreneurs; financial decision-making; investment behavior; qualitative research