Assessing the predictive ability of behavioral finance theories using out-of-sample data is important. The potentially boundless set of psychological biases underlying the behavioral explanations for observed security price behavior risk over-fitting theory to data. We test pricing effects attributed to a central psychological bias, representativeness, which underlies many behavioral-finance th...

Follow this and additional works at: http://scholarship.law.upenn.edu/faculty_scholarship Part of the Administrative Law Commons, American Politics Commons, Banking and Finance Commons, Behavioral Economics Commons, Business Law, Public Responsibility, and Ethics Commons, Consumer Protection Law Commons, Finance and Financial Management Commons, Law and Economics Commons, Political Economy Comm...

Over the past years an interest in Culture has increased among financial scholars. We provide a survey using financial research-articles with an explicit focus on Culture and relying on a systematic screening of 21 academic journals in Finance and beyond. While we can identify three financial topics at large, we note an overwhelming diversity of approaches in the way culture is conceptualized a...

The perceptual error of the investors is one of the issues discussed in behavioral finance. The perceptual error is a wrong sensual or perceptual error.  That is, what we see or hear does not match with the reality. Regarding the fact that the perception of individuals is affected by their worldview and beliefs and religious attitudes can also affect their viewpoint, in this study, the relation...

Recently, understanding the anomalies in financial markets have severely chal-lenged the efficient market hypothesis (EMH). The price momentum is one of the anomalies described as the unexplained short-term return by Fama and French (1996). The present research strives for modeling the price momentum of winner stock in the Iranian capital market. The grounded theory method was used to explain t...

Behavioral science has made a considerable contribution to finance. To gain an understanding of the scientific contributions emerging from all fields finance with behavioral perspective, this paper reviews content major journal dedicated finance, Journal and Experimental Finance (JBEF), since its foundation 8 years ago. For purpose, we employ bibliometrics analysis shed light on publication tre...

participants of MFA and FMA conferences for helpful comments. The paper was previously titled The Physical Foundation of Human Psychology and Behavioral Finance.

The online version of A Behavioral Approach to Asset Pricing by Hersh Shefrin. Part III: Developing Behavioral Asset Pricing Models.A unified behavioral approach to asset pricing requires a general definition of sentiment. Objective pdf and the individual investors subjective pdf. ÂœA mathematical-economist-turned-behavioral-economist, Hersh Shefrin challenges and delights the reader by applyin...