In Beyond Greed and Fear, the most authoritative guide to what really influences the decision-making process, Hersh Shefrin uses the latest psychological research to help us understand the human behaviour that guides stock selection, financial services, and corporate financial strategy.
Shefrin argues that financial practitioners must acknowledge and understand behavioural finance - the application of psychology to financial behaviour - in order to avoid many of the investment pitfalls caused by human error. Through colourful, often humorous real-world examples, Shefrin points out the common but costly mistakes that money managers, security analysts, financial planners, investment bankers, and corporate leaders make, so that readers gain valuable insights into their own financial decisions and those of their employees, asset managers, and advisors.
1. Introduction
2. Heuristic-Driven Bias : The First Theme
3. Frame Dependence : The second Theme
4. Inefficient Markets : The Third Theme
Part 2: Prediction
5. Trying to Predict the Market
6. Sentimental Journey : The Illusion of Validity
7. Picking Stocks to Beat the Market
8. Biased Reactions to Earnings Announcements
Part 3: Individual Investors
9. 'Get-Evenitis' : Riding losers too long
10. Portfolios, Pyramids, Emotions, and Biases
11. Retirement Saving : Myopia and Self-Control
Part 4: Institutional Investors
12. Open-Ended Mutual Funds : Misframing, 'Hot Hands' and Obfuscation Games
13. Closed-End Funds : What Drives Discounts?
14. Fixed Income Securities : The Full Measure of Behavioural Phenomena
15. The Money Management Industry : Framing Effects, Style 'Diversification' and Regret
Part 5: The Interface between Corporate Finance and Investment
16. Corporate Takeovers and the Winner's Curse
17. IPOs : Initial Underpricing, Long-term Underperformance and 'Hot-Issue' markets
18. Optimism in Analysts' Earnings Predictions and Stock Recommendations
Part 6: Options, Futures and Foreign Exchange
19. Options : How they're used, How they're priced, and how they reflect sentiment
20. Commodity Futures : Orange Juice and Sentiment
21. Excessive Speculation in Foreign Exchange
Shopping basket
