Investor decision-making and the role of the financial advisor : a behavioural finance approach / / Caterina Cruciani

• Autore: Cruciani Caterina
• Pubblicazione: Cham, Switzerland : , : Palgrave Macmillan, , [2017]; ©2017
• Edizione: 1st ed. 2017.
• Descrizione fisica: 1 online resource (XIII, 161 p. 2 illus. in color.)
• Disciplina: 332.6
• Soggetto topico: Investments - Psychological aspects; Investments
• Note generali: Includes index.
• Nota di contenuto: Intro -- Preface -- Acknowledgements -- Contents -- List of Figures -- Part I: The Investor -- 1: Understanding Investor Behaviour -- 1 Financial Advisory Practice and Investor Behaviour -- 2 The Departure from Traditional Models of Decision-Making Under Risk -- 3 Understanding How People Think Under Risk -- 3.1 The Rationale -- 3.2 Seminal Biases and Heuristics -- 3.3 Other Financially Relevant Biases -- 4 Understanding How People Choose Under Risk -- 4.1 Rationale -- 4.2 Prospect Theory: The Modelling Framework -- 4.3 Prospect Theory: Implications for Behavioural Finance -- 4.3.1 Framing Effects -- 4.3.2 Mental Accounting -- 4.3.3 The Equity Premium Puzzle -- 4.4 Ambiguity Aversion -- 5 Summary and Conclusion -- Bibliography -- 2: Different Views on Economic Rationality: Affect and Emotions -- 1 Introduction -- 2 Are Biases Truly Irrational? An Evolutionary Perspective -- 3 Emotions and Decision-Making -- 3.1 Rationale -- 3.2 Expected Emotions: Regret Aversion -- 3.3 The Affect Heuristic -- 3.4 Emotional Finance and Financial Advisors -- 4 An Alternative View on Heuristic Decision-Making: Heuristics as Satisficing Responses -- 4.1 Rationale -- 4.2 The Adaptive Toolbox -- 4.3 Finance and Fast and Frugal Heuristics -- 4.4 Evolutionary Foundations of Ecological Rationality -- 5 The Last Piece of the Puzzle: Investor Personality -- 6 Summary and Conclusions -- Bibliography -- Part II: The Advisor -- 3: Financial Advisory: Basic Roles and Functions -- 1 Introduction -- 2 The Financial Advice Industry -- 2.1 The Context -- 2.2 Roles and Functions of Financial Advisors: Improving Financial Performance -- 2.3 Additional Roles of Financial Advisory Practice -- 2.3.1 Rationale -- 2.3.2 Information Provision -- 2.3.3 Financial Education -- 2.3.4 Addressing Behavioural Biases. ; 2.3.5 The Role of Mediator in Collective Decision-Making -- 2.3.6 Some Concluding Remarks on Ancillary Roles -- 3 A Fiduciary Relationship -- 4 Summary and Conclusions -- References -- 4: Financial Advisory: Normative Developments and Incentives -- 1 Introduction -- 2 The Financial Advisory Industry: A Historical Overview -- 2.1 Rationale -- 2.2 The American Context -- 2.2.1 Building the Profession -- 2.2.2 Current Challenges -- 2.3 The European Context -- 2.3.1 Creating a Common Financial Market -- 2.3.2 Formal Regulation of the Financial Advice Industry: The MiFID Directive -- 2.3.3 MiFID II: Redefining Financial Advisory Practice -- 2.3.4 MiFID II: Challenges and Opportunities -- 2.3.5 Implementation of MiFID II Across the Member States -- 3 Financial Advisory Practice: Regulation and Behavioural Considerations -- 3.1 Rationale -- 3.2 Implementing the Suitability Requirement -- 3.3 Conflict of Interest -- 4 Summary and Conclusions -- References -- Part III: Behavioural Financial Advisory Practice -- 5: Behavioural Financial Advisory Practice -- 1 Introduction -- 2 Operationalizing Behavioural Finance -- 2.1 Debiasing Approaches -- 2.2 Managing Biases -- 3 Behavioural Portfolio Theory -- 3.1 The Antecedents of Behavioural Portfolio Theory -- 3.2 Behavioural Portfolio Theory -- 4 Behavioural Financial Advisory Practices -- 4.1 The Rationale -- 4.2 Minimizing the Impact of Biases -- 4.3 Bypassing Biases: Financial Advisors as Money Doctors -- 4.3.1 The Rationale -- 4.3.2 Modelling Trust -- 4.3.3 Trust and Financial Intermediaries -- 5 Summary and Conclusions -- Bibliography -- Index.
• Sommario/riassunto: This book looks at financial advisory from a behavioural perspective, and focuses on how the nature of the relationship between advisors and clients may affect the ability of the advisor to perform its functions. Broken into three key parts, the book looks at the client, the advisor, and the relationship between thw two. Chapters review relevant theories of decision-making under risk to understand the nature of clients’ decisions. The literature on advisors’ functions and the normative landscape regulating financial advisory are also addressed. Finally, this book reviews how behavioural finance has traditionally addressed portfolio selection and explains how trust can be seen as a viable avenue to maximize advisors’ effectiveness and pursue clients’ needs. This book will be of interest to both behavioural finance scholars and practitioners interested in understanding what the future of financial advisory may have in stock.
• Titolo autorizzato: Investor decision-making and the role of the financial advisor
• ISBN: 3-319-68234-2
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910255052603321
• Lo trovi qui: Univ. Federico II