The Experts below are selected from a list of 3975 Experts worldwide ranked by ideXlab platform

John Livanas - One of the best experts on this subject based on the ideXlab platform.

  • Lifecycle Investing: Is It More about Behavioural Finance than Risk Management?
    Jassa-the Finsia Journal of Applied Finance, 2010
    Co-Authors: John Livanas
    Abstract:

    While 'lifecycle investing' has been a marketing success, this paper demonstrates the fallacy of this approach when sold as a gradual risk reduction strategy, and argues that lifecycle investing is rooted more in Behavioural Finance than in lifetime risk management. A more appropriate approach would be to assess lifetime risk assumed and manage this according to the investor's risk profile.

  • Behavioural Finance Implications in Portfolio Construction
    2007
    Co-Authors: John Livanas
    Abstract:

    This paper outlines some thoughts on portfolio construction where investors have asymmetric risk tolerance, with steeper downside risk intolerance. The paper presents the implications of this understanding on indifference curves by mapping Kahneman and Tversky's 'Value' function as a set of 'value indifference curves', and identifies an implication that portfolio optimisation may consider downside insurance. The paper goes on to discuss the appropriate time horizon of the portfolio given investor indifference to time, and given indeterminate cashflows. Finally the paper outlines the process of risk budgeting, and again poses the question as to whether portfolio optimisation must consider asymmetric investor risk tolerance.

  • What Investors Want! Behavioural Finance Implications in Optimal Portfolio Construction
    SSRN Electronic Journal, 2007
    Co-Authors: John Livanas
    Abstract:

    The paper outlines some thoughts on portfolio construction that take into account investors' asymmetric risk tolerance as commonly argued by adherents to Behavioural Finance. The paper develops previous empirical findings of investor risk tolerances determined using Choice Modelling of alternate portfolios and argues that portfolio optimisation may need to consider insurance if it is to maximize investor utility. Further, the paper makes the point that while the cost of insurance acts as a drag on returns, the value of insurance allows investors to take greater risks. And while on an aggregate basis pricing of insurance must act to compensate for aggregate downside risk take, on an individual level, the value function works to provide better utility to the individual investor.

Victoria Wise - One of the best experts on this subject based on the ideXlab platform.

  • Behavioural Finance theory: implications for retirement savings
    International Journal of Behavioural and Healthcare Research, 2009
    Co-Authors: Michael Ntalianis, Victoria Wise
    Abstract:

    This paper contains an overview of the life-cycle model and the Behavioural Finance theories that assist in explaining why individual savings behaviour deviates from what is predicted by this model. According to Bernstein (1996), the Behavioural research evidence suggests irrationality, inconsistency and incompetence in the way individuals approach and arrive at decisions and choices when faced with uncertainty. The review of literature undertaken in this paper confirms that numerous individuals are not adequately equipped to handle the complex decisions required to properly plan and save for their retirement. While the targeting of educational resources to those individuals who are prepared to actively engage in the management of their retirement funds is likely to be beneficial, there is a need for Behavioural factors to underpin future retirement savings policies.

Avanidhar Subrahmanyam - One of the best experts on this subject based on the ideXlab platform.

  • Behavioural Finance: A review and synthesis
    European Financial Management, 2008
    Co-Authors: Avanidhar Subrahmanyam
    Abstract:

    I provide a synthesis of the Behavioural Finance literature over the past two decades. I review the literature in three parts, namely, (i) empirical and theoretical analyses of patterns in the cross-section of average stock returns, (ii) studies on trading activity, and (iii) research in corporate Finance. Behavioural Finance is an exciting new field because it presents a number of normative implications for both individual investors and CEOs. The papers reviewed here allow us to learn more about these specific implications.

  • Behavioural Finance: A Review and Synthesis
    European Financial Management, 2007
    Co-Authors: Avanidhar Subrahmanyam
    Abstract:

    "I provide a synthesis of the Behavioural Finance literature over the past two decades. I review the literature in three parts, namely, (i) empirical and theoretical analyses of patterns in the cross-section of average stock returns, (ii) studies on trading activity, and (iii) research in corporate Finance. Behavioural Finance is an exciting new field because it presents a number of normative implications for both individual investors and CEOs. The papers reviewed here allow us to learn more about these specific implications." Copyright 2007 The Author Journal compilation (c) Blackwell Publishing Ltd.

David Hillson - One of the best experts on this subject based on the ideXlab platform.

  • Perspectives on risk management and Behavioural Finance
    2014
    Co-Authors: David Hillson
    Abstract:

    The application of Behavioural Finance to Risk Management is still in its infancy and few models have evolved as to how to apply the theories and research findings to practical day-to-day risk management problems. In fact, the very topic of this Special Issue — Is there a role for Behavioural Finance in Risk Management? — is still a moot question. In addition to commissioning the papers in this issue, the editors asked a number of respected figures in the wider risk management community to provide their insights on the topic. In particular four thought-leaders were asked for their perspectives on two specific questions: (1) Should banks and regulators include the findings of psychological/Behavioural research in their risk management frameworks; and (2) In the light of new UK legislation, 1 should 'reckless' behaviour be regulated? The responses of these experts are enlightening, but as David Hillson notes the question is not whether behaviour should be considered in risk management 'but how?' Hopefully the perceptive answers will trigger debate among risk management professionals as to how the theories can be applied.

Yaz Gulnur Muradoglu - One of the best experts on this subject based on the ideXlab platform.

  • Personal routes into Behavioural Finance
    Review of Behavioral Finance, 2020
    Co-Authors: Robert Hudson, Yaz Gulnur Muradoglu
    Abstract:

    The paper aims to provide the individual routes of the authors into Behavioural Finance in order to introduce the special issue.,The paper provides the background to the authors' personal route into Behavioural Finance.,The paper highlights general themes of development and influence of Behavioural Finance and relationships with practice and other areas of academic Finance.,The paper offers the perspectives of the authors on how they feel the research area of Behavioural Finance will develop in the future.

  • What can Behavioural Finance teach us about Finance
    Qualitative Research in Financial Markets, 2010
    Co-Authors: Werner F.m. Debondt, William Forbes, Paul Hamalainen, Yaz Gulnur Muradoglu
    Abstract:

    Purpose – The paper draws on the key themes raised at a Round Table discussion on Behavioural Finance attended by academics and practitioners. The paper provides a background to the key aims of Behavioural Finance research and the development of the discipline over time. The purpose of this paper is to indicate some future research issues on Behavioural Finance that emanate from the financial crisis and highlight areas of mutual benefit to both Behavioural Finance academics and the Finance industry so as to encourage a creative cross‐fertilisation.Design/methodology/approach – The paper draws on a Round Table discussion on Behavioural Finance that was organized by the Behavioural Finance Working Group, the Centre for the Study of Financial Innovation and Financial Services Knowledge Transfer Network.Findings – The paper highlights numerous benefits that Behavioural Finance research can contribute to the financial industry, but at the same time there is an evident discrepancy between the academic and the p...