Chapter 1

Foundations of Behavioral Finance

Standard Finance vs Behavioral Finance

medium • 1 min read

Rationality and Homo Economicus

medium • 2 min read

Limits to Arbitrage (Fundamental risk, Noise trader risk)

medium • 3 min read

Prospect Theory (Kahneman and Tversky) vs Expected Utility Theory

medium • 4 min read

Loss aversion and the value function

medium • 5 min read

Chapter 2

Cognitive Biases and Heuristics

System 1 and System 2 thinking

medium • 1 min read

Representativeness heuristic (conjunction fallacy, sample size neglect)

medium • 2 min read

Availability heuristic and recency bias

medium • 3 min read

Anchoring and adjustment

medium • 4 min read

Confirmation bias and hindsight bias

medium • 5 min read

Chapter 3

Emotional Biases in Investing

Overconfidence and illusion of control

medium • 1 min read

Endowment effect and status quo bias

medium • 2 min read

Regret aversion and the disposition effect

medium • 3 min read

Mental accounting

medium • 4 min read

Herd behavior and social contagion

medium • 5 min read

Chapter 4

Behavioral Corporate Finance

Managerial overconfidence and corporate decisions

medium • 1 min read

Behavioral aspects of capital structure and dividend policy

medium • 2 min read

M&A decisions under behavioral biases (Hubris hypothesis)

medium • 3 min read

Earnings management and catering theory

medium • 4 min read

Market timing by corporate executives

medium • 5 min read

Chapter 5

Market Anomalies and Behavioral Investing

Calendar anomalies (January effect, Weekend effect)

medium • 1 min read

Momentum and reversal effects

medium • 2 min read

Value vs Growth anomaly

medium • 3 min read

Behavioral portfolio theory (BPT)

medium • 4 min read

Strategies to overcome behavioral biases for investors

medium • 5 min read