Skip to main content
main-content
Top

Hint

Swipe to navigate through the chapters of this book

2020 | OriginalPaper | Chapter

4. Financial Behavioralism: A Behavioral Finance Approach to Minimize Losses and Maximize Profits from Heuristics and Biases

Author: MPA DDr. Julia Puaschunder

Published in: Behavioral Economics and Finance Leadership

Publisher: Springer International Publishing

share
SHARE

Abstract

In an impressive line of experiments and field studies, the growing field of behavioral finance has offered behavioral insights on how markets deviate from rationality. Human actors are prone to base their investment choices on very many other factors than simply volatility and profit maximization opportunities. Most recently nudging has started using the emerging insights about human heuristics and biases to improve decision making in different domains ranging from health, wealth and prosperity, which are covered in the following chapters. The following part reviews some of the behavior insights gained in the last decades and shows ways how to profit from heuristics and biases.
Literature
go back to reference Alperson, M., Tepper-Marlin, A. T., Schorsch, J., & Wil, R. (1991). The better world investment guide: One hundred companies whose policies you should know about before you invest your money. From the Council on Economic Priorities. New York, NY: Prentice Hall. Alperson, M., Tepper-Marlin, A. T., Schorsch, J., & Wil, R. (1991). The better world investment guide: One hundred companies whose policies you should know about before you invest your money. From the Council on Economic Priorities. New York, NY: Prentice Hall.
go back to reference Ariely, D., & Wertenbroch, K. (2002). Procrastination, deadlines, and performance: Self-control by precommitment. Psychological Science, 13(3), 219–224. CrossRef Ariely, D., & Wertenbroch, K. (2002). Procrastination, deadlines, and performance: Self-control by precommitment. Psychological Science, 13(3), 219–224. CrossRef
go back to reference Ashraf, N., Karlan, D. S., & Yin, W. (2006). Tying Odysseus to the mast: Evidence from a commitment savings product in the Philippines. Quarterly Journal of Economics, 121(2), 635–672. CrossRef Ashraf, N., Karlan, D. S., & Yin, W. (2006). Tying Odysseus to the mast: Evidence from a commitment savings product in the Philippines. Quarterly Journal of Economics, 121(2), 635–672. CrossRef
go back to reference Bazerman, M. H., Loewenstein, G., & White, S. B. (1992). Reversals of preference in interpersonal decision making: The difference between judging an alternative and choosing between multiple alternatives. Administrative Science Quarterly, 37, 220–240. CrossRef Bazerman, M. H., Loewenstein, G., & White, S. B. (1992). Reversals of preference in interpersonal decision making: The difference between judging an alternative and choosing between multiple alternatives. Administrative Science Quarterly, 37, 220–240. CrossRef
go back to reference Bazerman, M. H., & Moore, D. (2009). Judgment in managerial decision making. Hoboken, NJ: Wiley. Bazerman, M. H., & Moore, D. (2009). Judgment in managerial decision making. Hoboken, NJ: Wiley.
go back to reference Bazerman, M. H., Moore, D. A., Tenbrunsel, A. E., Wade-Benzoni, K. A., & Blount, S. (1999). Explaining how preferences change across joint versus separate evaluation. Journal of Economic Behavior and Organization, 39, 41–58. CrossRef Bazerman, M. H., Moore, D. A., Tenbrunsel, A. E., Wade-Benzoni, K. A., & Blount, S. (1999). Explaining how preferences change across joint versus separate evaluation. Journal of Economic Behavior and Organization, 39, 41–58. CrossRef
go back to reference Bazerman, M. H., Schroth, H., Pradhan, P., Diekmann, K., & Tenbrunsel, A. (1994). The inconsistent role of comparison others and procedural justice in reactions to hypothetical job descriptions: Implications for job acceptance decisions. Organizational Behavior and Human Processes, 60, 326–352. CrossRef Bazerman, M. H., Schroth, H., Pradhan, P., Diekmann, K., & Tenbrunsel, A. (1994). The inconsistent role of comparison others and procedural justice in reactions to hypothetical job descriptions: Implications for job acceptance decisions. Organizational Behavior and Human Processes, 60, 326–352. CrossRef
go back to reference Beltratti, A. (2003). Socially responsible investment in general equilibrium: Economic theory and applications. Retrieved from www.​ssrn.​com. Beltratti, A. (2003). Socially responsible investment in general equilibrium: Economic theory and applications. Retrieved from www.​ssrn.​com.
go back to reference Biller, A. (2007). Socially responsible investing now part of the landscape. Benefits and Compensation Digest, 44, 12. Biller, A. (2007). Socially responsible investing now part of the landscape. Benefits and Compensation Digest, 44, 12.
go back to reference Bollen, N. P. B., & Cohen, M. A. (2004). Mutual fund attributes and investor behavior. Unpublished working paper, Vanderbilt University. Bollen, N. P. B., & Cohen, M. A. (2004). Mutual fund attributes and investor behavior. Unpublished working paper, Vanderbilt University.
go back to reference Broadhurst, D., Watson, J., & Marshall, J. (2003). Ethical and socially responsible investment. A reference guide for researchers. München: Saur. Broadhurst, D., Watson, J., & Marshall, J. (2003). Ethical and socially responsible investment. A reference guide for researchers. München: Saur.
go back to reference Chabris, Ch., Laibson, D., & Schuldt, J. (2008). Intertemporal choice. New York, NY: Palgrave Dictionary of Economics. Chabris, Ch., Laibson, D., & Schuldt, J. (2008). Intertemporal choice. New York, NY: Palgrave Dictionary of Economics.
go back to reference Crane, A., & Livesey, S. (2002). Are you talking to me? Stakeholder communication and the risks and rewards of dialogue. In J. Andriof, S. Waddock, S. Rahman, & B. Husted (Eds.), Unfolding stakeholder thinking (pp. 39–52). Sheffield: Greenleaf. Crane, A., & Livesey, S. (2002). Are you talking to me? Stakeholder communication and the risks and rewards of dialogue. In J. Andriof, S. Waddock, S. Rahman, & B. Husted (Eds.), Unfolding stakeholder thinking (pp. 39–52). Sheffield: Greenleaf.
go back to reference Dupré, D., Girerd-Potin, I., & Kassoua, R. (2008). Adding an ethical dimension to portfolio management. Working paper. Retrieved from www.​ssrn.​com. Dupré, D., Girerd-Potin, I., & Kassoua, R. (2008). Adding an ethical dimension to portfolio management. Working paper. Retrieved from www.​ssrn.​com.
go back to reference Frey, D., & Irle, M. (2002). Theorien der Sozialpsychologie. Bern: Hans Huber. Frey, D., & Irle, M. (2002). Theorien der Sozialpsychologie. Bern: Hans Huber.
go back to reference Geczy, Ch C, Stambaugh, R. F., & Levin, D. (2003). Investing in socially responsible mutual funds. Philadelphia, PA: The Wharton School. CrossRef Geczy, Ch C, Stambaugh, R. F., & Levin, D. (2003). Investing in socially responsible mutual funds. Philadelphia, PA: The Wharton School. CrossRef
go back to reference Gill, A. (2001). Saints and sinners: Who’s got religion?. Hong Kong: Credit Lyonnais Securities Asia Report. Gill, A. (2001). Saints and sinners: Who’s got religion?. Hong Kong: Credit Lyonnais Securities Asia Report.
go back to reference Gine, X., Karlan, D., & Zinman, J. (2009). Put your money where your butt is: A commitment contract for smoking cessation. Policy Research Working Paper Series 4985, The World Bank. Gine, X., Karlan, D., & Zinman, J. (2009). Put your money where your butt is: A commitment contract for smoking cessation. Policy Research Working Paper Series 4985, The World Bank.
go back to reference Gino, F., & Pierce, L. (2009). The abundance effect: Unethical behavior in the presence of wealth. Organizational Behavior and Human Decision Processes, 109(2), 142–155. CrossRef Gino, F., & Pierce, L. (2009). The abundance effect: Unethical behavior in the presence of wealth. Organizational Behavior and Human Decision Processes, 109(2), 142–155. CrossRef
go back to reference Gourville, J. T., & Soman, D. (2005). Overchoice and assortment type: When and why variety backfires. Marketing Science, 24(3), 295–382. CrossRef Gourville, J. T., & Soman, D. (2005). Overchoice and assortment type: When and why variety backfires. Marketing Science, 24(3), 295–382. CrossRef
go back to reference Guenster, N., Derwall, J., Bauer, R., & Koedijk, K. (2005). The economic value of corporate eco-efficiency. Unpublished working paper, Erasmus University. Guenster, N., Derwall, J., Bauer, R., & Koedijk, K. (2005). The economic value of corporate eco-efficiency. Unpublished working paper, Erasmus University.
go back to reference Hitsch, G. J., Hortaçsu, A., & Ariely, D. (2005). What makes you click: An empirical analysis on online dating. Retrieved from www.​ssrn.​com. Hitsch, G. J., Hortaçsu, A., & Ariely, D. (2005). What makes you click: An empirical analysis on online dating. Retrieved from www.​ssrn.​com.
go back to reference Hong, H. G., & Jiang, W. (2011). When some investors head for the exit. American Finance Association (AFA) 2013 San Diego Meetings Paper. Hong, H. G., & Jiang, W. (2011). When some investors head for the exit. American Finance Association (AFA) 2013 San Diego Meetings Paper.
go back to reference Hong, H. G., & Kacperczyk, M. (2007). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15–36. CrossRef Hong, H. G., & Kacperczyk, M. (2007). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15–36. CrossRef
go back to reference Hong, H. G., & Yogo, M. (2012). What does futures market interest tell us about the macroeconomy and asset prices? Journal of Financial Economics, 105(3), 473–490. CrossRef Hong, H. G., & Yogo, M. (2012). What does futures market interest tell us about the macroeconomy and asset prices? Journal of Financial Economics, 105(3), 473–490. CrossRef
go back to reference Houser, D., Schunk, D., Winter, J., & Xiao, E. (2010). Temptation and commitment in the laboratory. IEW Working Paper iewwp 448, Institute for Empirical Research in Economics, University of Zurich. Houser, D., Schunk, D., Winter, J., & Xiao, E. (2010). Temptation and commitment in the laboratory. IEW Working Paper iewwp 448, Institute for Empirical Research in Economics, University of Zurich.
go back to reference Irwin, J. R., Slovic, P., Lichtenstein, S., & McClelland, G. (1993). Preference reversals and the measurement of environmental values. Journal of Risk and Uncertainty, 9, 5–38. CrossRef Irwin, J. R., Slovic, P., Lichtenstein, S., & McClelland, G. (1993). Preference reversals and the measurement of environmental values. Journal of Risk and Uncertainty, 9, 5–38. CrossRef
go back to reference Kahneman, D., & Ritov, I. (1994). Determinants of stated willingness to pay for public goods: A study in the headline method. Journal of Risk and Uncertainty, 9, 5–38. CrossRef Kahneman, D., & Ritov, I. (1994). Determinants of stated willingness to pay for public goods: A study in the headline method. Journal of Risk and Uncertainty, 9, 5–38. CrossRef
go back to reference Kaur, S., Kremer, M., & Mullainathan, S. (2010). Self-control and the development of work arrangements. American Economic Review, 100(2), 624–628. CrossRef Kaur, S., Kremer, M., & Mullainathan, S. (2010). Self-control and the development of work arrangements. American Economic Review, 100(2), 624–628. CrossRef
go back to reference Knoll, M. S. (2008). Socially responsible investment and modern financial markets. Unpublished working paper, University of Pennsylvania Law School. Knoll, M. S. (2008). Socially responsible investment and modern financial markets. Unpublished working paper, University of Pennsylvania Law School.
go back to reference Laibson, D. I. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 11, 443–477. CrossRef Laibson, D. I. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 11, 443–477. CrossRef
go back to reference Laibson, D. I., Repetto, A., & Tobacman, J. (2003). A debt puzzle. In P. Aghion, R. Frydman, J. Stiglitz & M. Woodford (Eds.), Knowledge, information, and expectations in modern economics: In honor of Edmund S. Phelps (pp. 228–266). Princeton, NJ: Princeton University Press. Laibson, D. I., Repetto, A., & Tobacman, J. (2003). A debt puzzle. In P. Aghion, R. Frydman, J. Stiglitz & M. Woodford (Eds.), Knowledge, information, and expectations in modern economics: In honor of Edmund S. Phelps (pp. 228–266). Princeton, NJ: Princeton University Press.
go back to reference Little, K. (2008). Socially responsible investing: Put your money where your values are. New York, NY: Penguin. Little, K. (2008). Socially responsible investing: Put your money where your values are. New York, NY: Penguin.
go back to reference Markowitz, H. M. (1959). Portfolio selection: Efficient diversification of investments. New York, NY: Wiley. Markowitz, H. M. (1959). Portfolio selection: Efficient diversification of investments. New York, NY: Wiley.
go back to reference Marron, D. B., & Morris, A. C. (2016). How to use carbon tax revenues. Washington, D.C.: Tax Policy Center Urban Institute & Brookings Institution. CrossRef Marron, D. B., & Morris, A. C. (2016). How to use carbon tax revenues. Washington, D.C.: Tax Policy Center Urban Institute & Brookings Institution. CrossRef
go back to reference McClure, S., Ericson, K., Laibson, D., Loewenstein, G., & Cohen, J. (2007). Time discounting for primary rewards. Journal of Neuroscience, 27(21), 5796–5804. CrossRef McClure, S., Ericson, K., Laibson, D., Loewenstein, G., & Cohen, J. (2007). Time discounting for primary rewards. Journal of Neuroscience, 27(21), 5796–5804. CrossRef
go back to reference McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or mis-specification? Strategic Management Journal, 21, 603–609. CrossRef McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or mis-specification? Strategic Management Journal, 21, 603–609. CrossRef
go back to reference McWilliams, A., Siegel, D., & Teoh, S. W. (1999). Issues in the use of the event study methodology: A critical analysis of corporate social responsibility studies. Organizational Research Methods, 2, 340–365. CrossRef McWilliams, A., Siegel, D., & Teoh, S. W. (1999). Issues in the use of the event study methodology: A critical analysis of corporate social responsibility studies. Organizational Research Methods, 2, 340–365. CrossRef
go back to reference Meier, S., & Sprenger, C. (2010). Stability of time preferences. IZA Discussion Paper 4756, Institute for the Study of Labor. Meier, S., & Sprenger, C. (2010). Stability of time preferences. IZA Discussion Paper 4756, Institute for the Study of Labor.
go back to reference Milkman, K. L., Mazza, M. C., Shu, L. L., Tsay, Ch-J, & Bazerman, M. H. (2012). Policy bundling to overcome loss aversion: A method for improving legislative outcomes. Organizational Behavior and Human Decision Processes, 117, 158–167. CrossRef Milkman, K. L., Mazza, M. C., Shu, L. L., Tsay, Ch-J, & Bazerman, M. H. (2012). Policy bundling to overcome loss aversion: A method for improving legislative outcomes. Organizational Behavior and Human Decision Processes, 117, 158–167. CrossRef
go back to reference Milkman, K. L., Rogers, T., & Bazerman, M. H. (2009). Highbrow films gather dust: Time-inconsistent preferences and online DVD rentals. Management Science, 55(6), 1047–1059. CrossRef Milkman, K. L., Rogers, T., & Bazerman, M. H. (2009). Highbrow films gather dust: Time-inconsistent preferences and online DVD rentals. Management Science, 55(6), 1047–1059. CrossRef
go back to reference Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121–147. CrossRef Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121–147. CrossRef
go back to reference Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer Affairs, 35(1), 45–72. CrossRef Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer Affairs, 35(1), 45–72. CrossRef
go back to reference Myers, St. (1984). The capital structure puzzle. Journal of Finance, 39, 575–592. CrossRef Myers, St. (1984). The capital structure puzzle. Journal of Finance, 39, 575–592. CrossRef
go back to reference Posnikoff, J. F. (1997). Disinvestment from South Africa: They did well by doing good. Contemporary Economic Policy, 15(1), 76–86. CrossRef Posnikoff, J. F. (1997). Disinvestment from South Africa: They did well by doing good. Contemporary Economic Policy, 15(1), 76–86. CrossRef
go back to reference Puaschunder, J. M. (2010). On corporate and financial social responsibility. Unpublished Doctoral Thesis. University of Vienna, Faculty of Psychology. Puaschunder, J. M. (2010). On corporate and financial social responsibility. Unpublished Doctoral Thesis. University of Vienna, Faculty of Psychology.
go back to reference Puaschunder, J. M. (2013). Ethical investing and socially responsible investing. In K. H. Baker & V. Ricciardi, (Eds.), Investor behavior (pp. 515–532). New York, NY: Wiley Finance Series. Puaschunder, J. M. (2013). Ethical investing and socially responsible investing. In K. H. Baker & V. Ricciardi, (Eds.), Investor behavior (pp. 515–532). New York, NY: Wiley Finance Series.
go back to reference Puaschunder, J. M. (2015a). The call for global responsible intergenerational leadership in the corporate world: The quest of an integration of intergenerational equity in contemporary Corporate Social Responsibility (CSR) models. In Proceedings of the 2015 6th International Conference of the Association of Global Management Studies at Alfred Lerner Hall of Columbia University. New York: The Association of Global Management Studies. Puaschunder, J. M. (2015a). The call for global responsible intergenerational leadership in the corporate world: The quest of an integration of intergenerational equity in contemporary Corporate Social Responsibility (CSR) models. In Proceedings of the 2015 6th International Conference of the Association of Global Management Studies at Alfred Lerner Hall of Columbia University. New York: The Association of Global Management Studies.
go back to reference Puaschunder, J. M. (2015b). When investors care about politics: A meta-synthesis of political divestiture studies on the capital flight from South Africa during Apartheid. Business, Peace and Sustainable Development, 5(24), 29–52. CrossRef Puaschunder, J. M. (2015b). When investors care about politics: A meta-synthesis of political divestiture studies on the capital flight from South Africa during Apartheid. Business, Peace and Sustainable Development, 5(24), 29–52. CrossRef
go back to reference Puaschunder, J. M. (2016a). Intergenerational climate change burden sharing: An economics of climate stability research agenda proposal. Global Journal of Management and Business Research: Economics and Commerce, 16(3), 31–38. Puaschunder, J. M. (2016a). Intergenerational climate change burden sharing: An economics of climate stability research agenda proposal. Global Journal of Management and Business Research: Economics and Commerce, 16(3), 31–38.
go back to reference Puaschunder, J. M. (2016b). On eternal equity in the fin-de-millénaire: Rethinking capitalism for intergenerational justice. Journal of Leadership, Accountability and Ethics, 13(2), 11–24. Puaschunder, J. M. (2016b). On eternal equity in the fin-de-millénaire: Rethinking capitalism for intergenerational justice. Journal of Leadership, Accountability and Ethics, 13(2), 11–24.
go back to reference Puaschunder, J. M. (2016c). On the emergence, current state and future perspectives of socially responsible investment (SRI). Consilience: The Columbia University Journal of Sustainable Development, 16(1), 38–63. Puaschunder, J. M. (2016c). On the emergence, current state and future perspectives of socially responsible investment (SRI). Consilience: The Columbia University Journal of Sustainable Development, 16(1), 38–63.
go back to reference Puaschunder, J. M. (2016d). Socially responsible investment as emergent risk prevention and means to imbue trust in the post-2008/2009 world financial crisis economy. In O. Lehner (Ed.), Routledge handbook of social and sustainable finance (pp. 222–238). London: Taylor and Francis. Puaschunder, J. M. (2016d). Socially responsible investment as emergent risk prevention and means to imbue trust in the post-2008/2009 world financial crisis economy. In O. Lehner (Ed.), Routledge handbook of social and sustainable finance (pp. 222–238). London: Taylor and Francis.
go back to reference Puaschunder, J. M. (2016e). The call for global responsible inter-generational leadership: The quest of an integration of inter-generational equity in corporate social responsibility (CSR) models. In D. Jamali (Ed.), Comparative perspectives on global corporate social responsibility (pp. 276–289). Hershey: IGI Global Advances in Business Strategy and Competitive Advantage Book Series. Puaschunder, J. M. (2016e). The call for global responsible inter-generational leadership: The quest of an integration of inter-generational equity in corporate social responsibility (CSR) models. In D. Jamali (Ed.), Comparative perspectives on global corporate social responsibility (pp. 276–289). Hershey: IGI Global Advances in Business Strategy and Competitive Advantage Book Series.
go back to reference Puaschunder, J. M. (2016f). The role of political divestiture for sustainable development. Journal of Management and Sustainability, 6(1), 76–91. CrossRef Puaschunder, J. M. (2016f). The role of political divestiture for sustainable development. Journal of Management and Sustainability, 6(1), 76–91. CrossRef
go back to reference Puaschunder, J. M. (2017a). Financing climate justice through climate change bonds. Oxford Journal of Finance and Risk Perspectives, 6(3), 1–10. Puaschunder, J. M. (2017a). Financing climate justice through climate change bonds. Oxford Journal of Finance and Risk Perspectives, 6(3), 1–10.
go back to reference Puaschunder, J. M. (2017b). Krisenrobuste alternativen. Global Investor, 3(5), 69. Puaschunder, J. M. (2017b). Krisenrobuste alternativen. Global Investor, 3(5), 69.
go back to reference Puaschunder, J. M. (2017c). Socio-psychological motives of socially responsible investors. Advances in Financial Economics, 19(1), 209–247. CrossRef Puaschunder, J. M. (2017c). Socio-psychological motives of socially responsible investors. Advances in Financial Economics, 19(1), 209–247. CrossRef
go back to reference Puaschunder, J. M. (2017d). Socio-psychological motives of socially responsible investors. Global Corporate Governance: Advances in Financial Economics, 19, 209–247. Puaschunder, J. M. (2017d). Socio-psychological motives of socially responsible investors. Global Corporate Governance: Advances in Financial Economics, 19, 209–247.
go back to reference Puaschunder, J. M. (2017e). The climatorial imperative. Agriculture Research and Technology, 7(4), 1–2. Puaschunder, J. M. (2017e). The climatorial imperative. Agriculture Research and Technology, 7(4), 1–2.
go back to reference Puaschunder, J. M. (2018a). Corporate social responsibility and opportunities for sustainable financial success. Hershey, PA: IGI Publishing. Puaschunder, J. M. (2018a). Corporate social responsibility and opportunities for sustainable financial success. Hershey, PA: IGI Publishing.
go back to reference Puaschunder, J. M. (2018b). Socio-psychological motives of socially responsible investments (SRI). In S. Boubaker, D. Cumming, & D. K. Nguyen (Eds.), Research handbook of investing in the triple bottom line: Finance, society and the environment (pp. 447–472). London: Edward Elgar. CrossRef Puaschunder, J. M. (2018b). Socio-psychological motives of socially responsible investments (SRI). In S. Boubaker, D. Cumming, & D. K. Nguyen (Eds.), Research handbook of investing in the triple bottom line: Finance, society and the environment (pp. 447–472). London: Edward Elgar. CrossRef
go back to reference Puaschunder, J. M. (2018c). The history of ethical, environmental, social and governance-oriented investments as a key to sustainable prosperity in the finance world. In S. Boubaker & D. K. Nguyen (Eds.), Corporate social responsibility, ethics and sustainable prosperity (pp. 359–388). Singapore: World Scientific. Puaschunder, J. M. (2018c). The history of ethical, environmental, social and governance-oriented investments as a key to sustainable prosperity in the finance world. In S. Boubaker & D. K. Nguyen (Eds.), Corporate social responsibility, ethics and sustainable prosperity (pp. 359–388). Singapore: World Scientific.
go back to reference Puaschunder, J. M. (2019a). An inquiry into the nature and causes of Climate Wealth of Nations: What temperature finance gravitates towards? Sketching a climate-finance nexus and outlook on climate change-induced finance prospects. Archives of Business Research, 7(3), 183–217. Puaschunder, J. M. (2019a). An inquiry into the nature and causes of Climate Wealth of Nations: What temperature finance gravitates towards? Sketching a climate-finance nexus and outlook on climate change-induced finance prospects. Archives of Business Research, 7(3), 183–217.
go back to reference Puaschunder, J. M. (2019b). Intergenerational governance and leadership around the world. In J. M. Puaschunder (Ed.), Intergenerational governance and leadership in the corporate world (pp. 153–177). Hershey, PA: Idea Group. CrossRef Puaschunder, J. M. (2019b). Intergenerational governance and leadership around the world. In J. M. Puaschunder (Ed.), Intergenerational governance and leadership in the corporate world (pp. 153–177). Hershey, PA: Idea Group. CrossRef
go back to reference Puaschunder, J. M. (2019c). Lessons from divesting South Africa during Apartheid for a green economy. In A. Tavidze (Ed.), Progress in economics research (pp. 119–147). Hauppauge, NY: Nova. Puaschunder, J. M. (2019c). Lessons from divesting South Africa during Apartheid for a green economy. In A. Tavidze (Ed.), Progress in economics research (pp. 119–147). Hauppauge, NY: Nova.
go back to reference Puaschunder, J. M. (2019d). Long-term investments. In W. L. Filho et al. (Ed.), Partnerships for the goals: Encyclopedia of the UN sustainable development goals, pp. 108–118. Cham: Springer Nature. Puaschunder, J. M. (2019d). Long-term investments. In W. L. Filho et al. (Ed.), Partnerships for the goals: Encyclopedia of the UN sustainable development goals, pp. 108–118. Cham: Springer Nature.
go back to reference Puaschunder, J. M. (2019e). When investors care about causes: Learning from political divestiture during Apartheid and the Sudan crisis for the transition to renewable energy via green bonds. In F. Lukhele (Ed.), Apartheid in South Africa: Reflections and lessons (pp. 1–28). Hauppauge, NY: Nova. Puaschunder, J. M. (2019e). When investors care about causes: Learning from political divestiture during Apartheid and the Sudan crisis for the transition to renewable energy via green bonds. In F. Lukhele (Ed.), Apartheid in South Africa: Reflections and lessons (pp. 1–28). Hauppauge, NY: Nova.
go back to reference Puaschunder, J. M., & Schwarz, G. (2012). The future is now: How joint decision-making curbs hyperbolic discounting but blurs social responsibility in the intergenerational equity public policy domain. Cambridge, MA: Harvard University Situationist Law and Mind Sciences Working Paper. Puaschunder, J. M., & Schwarz, G. (2012). The future is now: How joint decision-making curbs hyperbolic discounting but blurs social responsibility in the intergenerational equity public policy domain. Cambridge, MA: Harvard University Situationist Law and Mind Sciences Working Paper.
go back to reference Read, D., Loewenstein, G., & Kalyanaraman, S. (1999). Mixing virtue and vice: The combined effects of hyperbolic discounting and diversification. Journal of Behavioral Decision Making, 12, 257–273. CrossRef Read, D., Loewenstein, G., & Kalyanaraman, S. (1999). Mixing virtue and vice: The combined effects of hyperbolic discounting and diversification. Journal of Behavioral Decision Making, 12, 257–273. CrossRef
go back to reference Read, D., & van Leeuwen, B. (1998). Predicting hunger: The effects of appetite and delay on choice. Organizational Behavior and Human Decision Processes, 76(2), 189–205. CrossRef Read, D., & van Leeuwen, B. (1998). Predicting hunger: The effects of appetite and delay on choice. Organizational Behavior and Human Decision Processes, 76(2), 189–205. CrossRef
go back to reference Renneboog, L. D. R., Horst, J. R. T., & Zhang, C. (2007). Socially responsible investments: Methodology, risk and performance. Tilburg: Tilburg University Center for Economic. Renneboog, L. D. R., Horst, J. R. T., & Zhang, C. (2007). Socially responsible investments: Methodology, risk and performance. Tilburg: Tilburg University Center for Economic.
go back to reference Sachs, J. D. (2007). Common wealth: Economics for a crowded planet. London: Penguin. Sachs, J. D. (2007). Common wealth: Economics for a crowded planet. London: Penguin.
go back to reference Sachs, J. D. (2014). Climate change and intergenerational well-being. In L. Bernard & W. Semmler (Eds.), The Oxford handbook of the macroeconomics of global warming (pp. 248–259). Oxford: Oxford University Press. Sachs, J. D. (2014). Climate change and intergenerational well-being. In L. Bernard & W. Semmler (Eds.), The Oxford handbook of the macroeconomics of global warming (pp. 248–259). Oxford: Oxford University Press.
go back to reference Schroeder, M. (2003). Socially responsible investments in Germany, Switzerland, and the United States. Centre for European Economic Research Discussion Paper 03–10, March 2003. Schroeder, M. (2003). Socially responsible investments in Germany, Switzerland, and the United States. Centre for European Economic Research Discussion Paper 03–10, March 2003.
go back to reference Schueth, S. (2003). Socially responsible investing in the United States. Journal of Business Ethics, 43, 189–194. CrossRef Schueth, S. (2003). Socially responsible investing in the United States. Journal of Business Ethics, 43, 189–194. CrossRef
go back to reference Siegel, D. S., & Vitaliano, D. F. (2006). An empirical analysis of the strategic use of corporate social responsibility. Working paper, Rensselaer Polytechnic Institute. Siegel, D. S., & Vitaliano, D. F. (2006). An empirical analysis of the strategic use of corporate social responsibility. Working paper, Rensselaer Polytechnic Institute.
go back to reference Sparkes, R. (2002). Socially responsible investment: A global revolution. Cronwall: Wiley. Sparkes, R. (2002). Socially responsible investment: A global revolution. Cronwall: Wiley.
go back to reference Sparkes, R., & Cowton, Ch J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52, 45–57. CrossRef Sparkes, R., & Cowton, Ch J. (2004). The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52, 45–57. CrossRef
go back to reference Starr, M. (2008). Socially responsible investment and pro-social change. Journal of Economic Issues, 42(1), 51–73. CrossRef Starr, M. (2008). Socially responsible investment and pro-social change. Journal of Economic Issues, 42(1), 51–73. CrossRef
go back to reference Steurer, R. (2010). The role of governments in corporate social responsibility: Characterising public policies on CSR in Europe. Policy Science, 43, 49–72. CrossRef Steurer, R. (2010). The role of governments in corporate social responsibility: Characterising public policies on CSR in Europe. Policy Science, 43, 49–72. CrossRef
go back to reference Stiglitz, J. E. (2003). Globalization and its discontents. New York: Norton. Stiglitz, J. E. (2003). Globalization and its discontents. New York: Norton.
go back to reference Thaler, R. H., & Shefrin, H. M. (1981). An economic theory of self-control. Journal of Political Economy, 89, 392–406. CrossRef Thaler, R. H., & Shefrin, H. M. (1981). An economic theory of self-control. Journal of Political Economy, 89, 392–406. CrossRef
go back to reference Tippet, J. (2001). Performance of Australia’s ethical funds. Australian Economic Review, 34(2), 170–178. CrossRef Tippet, J. (2001). Performance of Australia’s ethical funds. Australian Economic Review, 34(2), 170–178. CrossRef
go back to reference Trevino, L. K., & Nelson, K. A. (2004). Managing business ethics: Straight talk about how to do right. Hoboken, NJ: Wiley. Trevino, L. K., & Nelson, K. A. (2004). Managing business ethics: Straight talk about how to do right. Hoboken, NJ: Wiley.
go back to reference Trope, Y., & Fishbach, A. (2004). Going beyond the motivation given: Self-control and situational control over behavior. In R. Hassin, J. S. Uleman, & J. W. Bargh (Eds.), The new unconscious (pp. 537–565). New York, NY: Oxford University Press. Trope, Y., & Fishbach, A. (2004). Going beyond the motivation given: Self-control and situational control over behavior. In R. Hassin, J. S. Uleman, & J. W. Bargh (Eds.), The new unconscious (pp. 537–565). New York, NY: Oxford University Press.
go back to reference Tversky, A., & Shafir, E. (1992). Choice under conflict: The dynamics of deferred decision. Psychological Science, 3(6), 358–361. CrossRef Tversky, A., & Shafir, E. (1992). Choice under conflict: The dynamics of deferred decision. Psychological Science, 3(6), 358–361. CrossRef
go back to reference Williams, G. (2005). Are socially responsible investors different from conventional investors? A comparison across six countries. Unpublished working paper, Bath: University of Bath. Williams, G. (2005). Are socially responsible investors different from conventional investors? A comparison across six countries. Unpublished working paper, Bath: University of Bath.
go back to reference World Bank 2015 Report (2015). Washington, D.C.: World Bank. World Bank 2015 Report (2015). Washington, D.C.: World Bank.
Metadata
Title
Financial Behavioralism: A Behavioral Finance Approach to Minimize Losses and Maximize Profits from Heuristics and Biases
Author
MPA DDr. Julia Puaschunder
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-54330-3_4

Premium Partner