Behavioral Corporate Finance: An Updated Survey
Malcolm Baker and
Chapter Chapter 5 in Handbook of the Economics of Finance, 2013, vol. 2, pp 357-424 from Elsevier
We survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The market timing and catering approach views managerial financing and investment decisions as rational managerial responses to securities mispricing. The managerial biases approach studies the direct effects of managersâ€™ biases and nonstandard preferences on their decisions. We review relevant psychology, economic theory and predictions, empirical challenges, empirical evidence, new directions such as behavioral signaling, and open questions.
Keywords: Behavioral; Corporate Finance; Sentiment; Catering; Market Timing; Irrational; Bias; Overconfidence; Optimism; Signaling (search for similar items in EconPapers)
JEL-codes: G14 G30 G31 G32 G34 G35 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Behavioral Corporate Finance: An Updated Survey (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:finchp:2-a-357-424
Access Statistics for this chapter
More chapters in Handbook of the Economics of Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().