The DOI matches its Crossref record; 5 of the 5 references it cites were found in a registry or an index.
Behavioral finance: Finance with normal people
Open accessAbstract
Behavioral finance is under construction as a solid structure of finance. It incorporates parts of standard finance, replaces others, and includes bridges between theory, evidence, and practice. Behavioral finance substitutes normal people for the rational people in standard finance. It substitutes behavioral portfolio theory for mean-variance portfolio theory, and behavioral asset pricing model for the CAPM and other models where expected returns are determined only by risk. Behavioral finance also distinguishes rational markets from hard-to-beat markets in the discussion of efficient markets, a distinction that is often blurred in standard finance, and it examines why so many investors believe that it is easy to beat the market. Moreover, behavioral finance expands the domain of finance beyond portfolios, asset pricing, and market efficiency and is set to continue that expansion while adhering to the scientific rigor introduced by standard finance.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
The source backs part of the claim, not all of it — or backs it for a different population, condition or comparison.
In the citing paper
“Features such as instant order execution, continuous price alerts, social trading forums and visually engaging interfaces can encourage excessive trading, overconfidence and herding behavior (Shiller, 2000; Statman, 2014).”
From Technology-Enabled Trading and Behavioral Biases of Retail Investors in Futures and Options Markets (2026) · cites this paper as Statman, 2014
Experimental — accuracy not yet measuredThe source backs part of the claim, not all of it — or backs it for a different population, condition or comparison.
In the citing paper
“Shiller (2015) and Statman (2014) argue that real-time information access and digital interfaces can amplify emotional reactions and heuristic-driven decisions.”
From Technology-Enabled Trading and Behavioral Biases of Retail Investors in Futures and Options Markets (2026) · cites this paper as Statman (2014)
Experimental — accuracy not yet measured
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*
Sharpe, W. F. (1964) · The Journal of Finance · doi:10.1111/j.1540-6261.1964.tb02865.x · Cited by 19,441
A New Approach to Consumer Theory
Lancaster, K. J. (1966) · Journal of Political Economy · doi:10.1086/259131 · Cited by 8,471
FAMA, E. F. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb04636.x · Cited by 5,350
Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors
Barber, B. M., & Odean, T. (2000) · The Journal of Finance · doi:10.1111/0022-1082.00226 · Cited by 3,955
On the impossibility of informationally efficient markets
Stiglitz, J. E., & Grossman, S. J. (1980) · Columbia University · doi:10.7916/d8765r99 · Cited by 3,645
Research works printed but not linked: 24
- Das, 2010, Portfolio optimization with mental accounts, Journal of Financial and Quantitative Analysis, 45, 311, 10.1017/S0022109010000141 · DOI
- Edmans, 2011, Does the stock market fully value intangibles? Employee satisfaction and equity prices, Journal of Financial Economics, 101, 621, 10.1016/j.jfineco.2011.03.021 · DOI · Paper page
- Fama, 2008, Ideas that changed the theory and practice of investing: a conversation with Eugene F Fama, Journal of Investment Consulting, 9, 6
- Fama, 1992, The cross-section of expected stock returns, Journal of Finance, 47, 427, 10.1111/j.1540-6261.1992.tb04398.x · DOI · Paper page
- Fisher, 2000, Investor sentiment and stock returns, Financial Analysts Journal, 56, 16, 10.2469/faj.v56.n2.2340 · DOI
- Grinblatt, 2009, Sensation seeking, overconfidence, and trading activity, Journal of Finance, 64, 549, 10.1111/j.1540-6261.2009.01443.x · DOI
- Lintner, 1965, The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets, Review of Economics and Statistics, 47, 13, 10.2307/1924119 · DOI
- Markowitz, 1952, Portfolio selection, Journal of Finance, 7, 77
- Markowitz, 1952, The utility of wealth, Journal of Political Economy, 60, 151, 10.1086/257177 · DOI
- Markowitz, 1999, The early History of portfolio theory: 1600–1960, Financial Analysts Journal, 55, 5, 10.2469/faj.v55.n4.2281 · DOI
- Miller, 1986, Behavioral Rationality in finance: the Case of dividends, Journal of Business, 59, 451, 10.1086/296380 · DOI
- Miller, 1961, Dividend policy, growth, and the valuation of shares, Journal of Business, 34, 411, 10.1086/294442 · DOI · Paper page
- Plassmann, 2008, Marketing actions can modulate neural representations of experienced pleasantness, Proceedings of the National Academy of Sciences, 105, 1050, 10.1073/pnas.0706929105 · DOI · Paper page
- Rattner, 2013, Who's right on the stock market?, The New York Times
- Ross, 1976, The arbitrage theory of capital asset pricing, Journal of Economic Theory, 13, 341, 10.1016/0022-0531(76)90046-6 · DOI
- Sapienza, 2013, Economic experts versus average americans, American Economic Review, 103, 636, 10.1257/aer.103.3.636 · DOI
- Sharpe, 1992, Asset allocation: management style and performance measurement, Journal of Portfolio Management, 7, 10.3905/jpm.1992.409394 · DOI
- Shefrin, 1984, Explaining investor preference for cash dividends, Journal of Financial Economics, 13, 253, 10.1016/0304-405X(84)90025-4 · DOI
- Shefrin, 1985, The disposition to sell winners too early and ride losers too long: theory and evidence, Journal of Finance, 40, 777, 10.1111/j.1540-6261.1985.tb05002.x · DOI · Paper page
- Shefrin, 1994, Behavioral capital asset pricing theory, Journal of Financial and Quantitative Analysis, 29, 323, 10.2307/2331334 · DOI
- Shefrin, 2000, Behavioral portfolio theory, Journal of Financial and Quantitative Analysis, 35, 127, 10.2307/2676187 · DOI
- Statman, 1999, Behavioral finance: past battles and future engagements, Financial Analysts Journal, 55, 18, 10.2469/faj.v55.n6.2311 · DOI
- Statman, 2008, Affect in a behavioral asset-pricing model, Financial Analysts Journal, 64, 20, 10.2469/faj.v64.n2.8 · DOI
- Varchaver, 2008, What Warren thinks, Fortune, 157, 59
Cited by
Sorted by citations
Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh
Sultana, S., Zulkifli, N., & Zainal, D. (2018) · Sustainability · doi:10.3390/su10061831 · Cited by 158
“In BAPM, the utilitarian, expressive and emotional benefits are included, and it states that the value of the investment or expected return of the stock depends on risks, social responsibility, liquidity, thrill, prestige, misleading emotions, cognitive errors, and so forth [73].”
BackgroundParveen, S., Satti, Z. W., Subhan, Q. A., & Jamil, S. (2020) · Borsa Istanbul Review · doi:10.1016/j.bir.2020.02.002 · Cited by 182
Investor sentiment and stock return volatility: Evidence from the Johannesburg Stock Exchange
Rupande, L., Muguto, H. T., & Muzindutsi, P. (2019) · Cogent Economics & Finance · doi:10.1080/23322039.2019.1600233 · Cited by 148
“It also implies that the traditional asset pricing models such as the capital asset pricing model (Linter, 1964; Sharpe, 1964) are replaced by behavioural asset pricing models (Statman, 2014).”
BackgroundRaut, R. K., Kumar, R., & Das, N. (2020) · Social Responsibility Journal · doi:10.1108/srj-02-2018-0052 · Cited by 111
Fundamental and behavioural determinants of stock return volatility in ASEAN-5 countries
Thampanya, N., Wu, J.-J., Nasir, M., & Liu, J. (2020) · Journal of international financial markets, institutions, and money · doi:10.1016/j.intfin.2020.101193 · Cited by 69
“…from rational expectation hypothesis, behavioural finance asserts that investors are ordinary people influenced by sentiment and psychological prejudices, that markets are inefficient, and that differences in expected returns are decided by more than the differences in risk (Statman, 2014).”
Background
Metadata
- Authors
- Statman, M.
- Affiliations
- Santa Clara University (US)
- Corresponding author
- Statman, Meir
- Venue
- Borsa Istanbul Review
- Publisher
- Elsevier BV
- Published
- 2014-06
- Volume
- 14
- Issue
- 2
- Pages
- 65-73
- ISSN
- 2214-8450 (ISSN-L)
- OpenAlex
- W1975017019
- Cited by
- 183
- References
- 29
- Citations by year
- 2026: 13 · 2025: 11 · 2024: 15 · 2023: 27 · 2022: 15 · 2021: 22 · 2020: 23 · 2019: 18 · 2018: 11 · 2017: 14 · 2016: 8 · 2015: 5 · 2014: 1
- FWCI
- 17.08
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Borsa Istanbul Review (publishedVersion, cc-by-nc-nd)
- SSRN Electronic Journal (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Literacy, Pension, Retirement Analysis
- Keywords
- behavioral finance, rationality assumption, behavioral portfolio theory, mean-variance portfolio theory, capital asset pricing model, market efficiency, investor overconfidence, expected returns
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Behavioral finance: Finance with normal people. https://app.cochat.ai/papers/10.1016/j.bir.2014.03.001
- The paper
- Statman, M. (2014). Behavioral finance: Finance with normal people. Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2014.03.001
