Conventional and modern finance is related to various theories concepts that has done respectable job in financial market providing guidance for strategic decisions. Among all, emerging behavior come up with psychological sociological issues affects the choices are often ignored by modernized theories. This paper will elaborate concept of its relation Efficient Market Hypothesis. The helps us k...

Chapter overview The finance industry has been singled out as a case of rampant unethical behavior and corporate greed. Drawing on scientific research on unethical behavior from the disciplines of psychology, behavioral ethics, behavioral economics, and organizational behavior, I discuss three characteristics of the finance industry that might explain the high level of unethical behavior in thi...

Follow this and additional works at: http://scholarship.law.upenn.edu/faculty_scholarship Part of the Banking and Finance Commons, Bankruptcy Law Commons, Business Administration, Management, and Operations Commons, Comparative and Foreign Law Commons, Corporate Finance Commons, Corporation and Enterprise Law Commons, Finance Commons, Industrial Organization Commons, Law and Economics Commons, ...

This report gives a brief introduction to Behavioral Finance. First, we present some thought-provoking examples based on empirical human behavior in risky and uncertain decision-making. Then, we present some history on rationality that is the support of formal theories on finance and economics. Finally, we introduce two applications of behavioral modelling in finance.

In order to test whether scaling exists in finance at the world level, we test whether the average growth rates and volatility of market capitalization (MC) depend on the level of MC. We analyze the MC for 54 worldwide stock indices and 48 worldwide bond indices. We find that (i) the average growth rate 〈r〉 of the MC and (ii) the standard deviation σ(r) of growth rates r decrease both with MC a...

Investors behavior is one of the most important discussion of the financial science in the financial market. Individual investors consider various factors when they buy and sell securities and show different behavior (Rational, Herding, Reaction and Heuristic). The main purpose of this research is to identify and categorize factors which impact individual investors behavior that are known as be...