CFA Institute Behavioral Finance

In Search of Attention

Thu, 12 Jan 2012 09:25:46

The authors use Google Trends? search volume index (SVI) to measure investor attention. They find that the SVI is correlated with but different from existing proxies for investor attention and that it captures ...

Behavioral Biases of Mutual Fund Investors

Thu, 12 Jan 2012 09:26:44

The authors examine how behavioral biases affect the mutual fund choices of individual investors. They analyze several behavioral factors that hamper decision making and detail the effects on investment performance across fund types, providing ...

Seven Principles for Arguing with Economists

Fri, 20 Jan 2012 10:18:41

A good primer for critical thinking in the presence of credentialed bluster.

The Influence of Affect on Beliefs, Preferences, and Financial Decisions

Thu, 26 Jan 2012 13:55:48

The area of the human brain that deals with emotions is the same area that processes information about risk, rewards, and punishment. Therefore, investors experiencing such positive emotions as excitement are likely to take greater ...

Watchdog to Protect ?Irrational? Investors

Fri, 27 Jan 2012 11:01:44

In a victory for behavioral economics and finance the UK's financial regulator will be more interventionist on behalf of consumers in recognition of the lessons of behavioral economics research. Registration/Subscription may be required to access this ...

Earnings Management and the Post-Earnings Announcement Drift

Thu, 02 Feb 2012 13:11:51

The authors test earnings management as a likely determinant of the delayed market response to earnings news. The delay anomaly is consistent both for companies that experience large positive earnings changes and ...

The Analysis of Money Flows, Market Participants, and Sentiment

Mon, 30 Jan 2012 10:52:48

Laszlo Birinyi is the founder and president of Birinyi Associates. He does not analyze the economy, has little interest in corporate developments and fundamentals, and has little use for traditional, technical, quantitative, or other market indicators. ...

Behavioral Finance and Equity Investment Strategies

Thu, 02 Feb 2012 13:59:31

Modern finance portrays investment decision making as rational choice. However, pure rationality does not describe how many decisions are truly made. This course examines (1) the behavioral strategies that amateur and expert investors rely upon to make ...

The Origin of Behavior

Wed, 11 Jan 2012 09:42:17

Andrew W. Lo discusses specific behaviors including risk-sensitive foraging, risk aversion, loss aversion, probability matching, randomization, and diversification. He explains how the investment process can be improved with a better understanding of ...