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Operationalizing a Behavioral Finance Risk Model: A Theoretical and Empirical Framework

Author

Listed:
  • Rassoul Yazdipour

    (California State University, Fresno)

  • William P. Neace

    (Health Care Excel)

Abstract

To keep up with the rather fast-growing interest in the discipline of Behavioral Finance and Economics caused in part by the new realities of the post-200S world, and the realities prevailing over three decades before and leading up to that year- there is a discernible need for the production of new generations of testable and yet more realistic models and theories as guides for financial and economic decision makers everywhere. The present work is one such attempt in that direction. This writing first improves upon a recently developed, and real-life-inspired, Behavioral Finance Risk Model (Yazdipour, 2011) and then offers a specific methodology for testing it.

Suggested Citation

  • Rassoul Yazdipour & William P. Neace, 2013. "Operationalizing a Behavioral Finance Risk Model: A Theoretical and Empirical Framework," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 16(2), pages 1-32, Spring.
    • Handle: RePEc:pep:journl:v:16:y:2013:i:2:p:1-32
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    References listed on IDEAS

    as
    1. Ganzach, Yoav, 2000. "Judging Risk and Return of Financial Assets," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(2), pages 353-370, November.
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    4. Rassoul Yazdipour, 2011. "Advances in Entrepreneurial Finance," Springer Books, Springer, number 978-1-4419-7527-0, June.
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    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Breitmayer, Bastian & Pelster, Matthias, 2018. "Affect and stock returns," Journal of Behavioral and Experimental Finance, Elsevier, vol. 18(C), pages 76-84.

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    More about this item

    Keywords

    Behavioral Finance; Behavioral Economics; Risk and uncertainty; Risk Model;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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