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.
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“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
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“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)
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Citations
Cites
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Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors
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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
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