Finance as Cognition

Behavioural Finance , Entrepreneurial Cognition and Sme Financial Management

The principal purpose of this review article is to discover what insights on the financial management of small and medium-sized enterprises the rapidly emerging field of Behavioural Finance can provide. The evolution of Behavioural Finance as a scholarly field is first reviewed. Thereafter, the growing literature in the relatively new field of Entrepreneurial Cognition is also reviewed. The pap...

Gender, Financial Deepening and the Production of Embodied Finance: Towards a Critical Feminist Analysis

Cases vs. Lectures: A Comparison of Learning Outcomes in Undergraduate Principles of Finance

This study investigates outcomes of teaching finance by case methods and lectures. The paper reports results of an experiment involving several sections of undergraduate Principles of Finance at an AACSB accredited school of business. Students received instruction by the case method or by lecture on standard corporate finance topics. They responded to quiz questions assessing cognitive and affe...

Cognitive Finance: Behavioural Strategies of Spending, Saving, and Investing

Research in economics is increasingly open to empirical results. The advances in behavioural approaches are expanded here by applying cognitive methods to financial questions. The field of “cognitive finance” is approached by the exploration of decision strategies in the financial settings of spending, saving, and investing. Individual strategies in these different domains are searched for and ...

The End of Behavioral Finance

n 1985, Werner De Bondt and I published an article that asked the question: “Does the stock market overreact?” The article was controversial because it gave evidence to support the hypothesis that a cognitive bias (investor overreaction to a long series of bad news) could produce predictable mispricing of stocks traded on the NYSE. Although this idea was hardly shocking to practitioners, the co...