A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and Behavioral Finance http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi. A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and Behavioral Finance. (July 2004). Social Science Research Network Working Paper Series. A significant topic within the behavioral finance literature is the notion of perceived risk pertaining to novice investors (i.e. individuals, finance students) and investment professionals (i.e. financial planners, security analysts). the author reveals the first of its kind thorough review of the academic research studies on perceived risk/risk perception from the disciplines of behavioral accounting since 1975 and behavioral finance since the late 1960s. This literature review incorporates 12 works from behavioral accounting and 71 endeavors from behavioral finance. In addition, the behavioral finance literature review section also includes approximately 10 narrative research reviews from risk perception studies in behavioral economics.
What is Behavioral Finance ? by Victor Ricciardi http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi and Helen K. Simon. What is Behavioral Finance?. Business, Education & Technology Journal, Vol. 2, No. 2, Fall 2000, 1-9. While conventional academic finance emphasizes theories such as Modern Portfolio Theory (MPT) and the Efficient Market Hypothesis (EMH), the emerging field of behavioral finance investigates the cognitive factors and emotional issues that impact the decision-making process of individuals, groups, and organizations. This paper presents an introduction to some general principles of behavioral finance including: overconfidence, cognitive dissonance, regret theory, and prospect theory. Also, this article provides strategies to assist individuals to resolve these mental errors and emotional pitfalls by recommending some important investment approaches for those who invest in stocks and mutual funds. Note: This paper serves as a very good introductory reading for an undergraduate class in finance and economics.
A Research Starting Point for the New Scholar: A Unique Perspective of Behavioral Finance by Victor Ricciardi http://papers.ssrn.com/sol3/papers.cfm?abstract... Victor Ricciardi. A Research Starting Point for the New Scholar: A Unique Perspective of Behavioral Finance. ICFAI Journal of Behavioral Finance, Vol. 3, No. 3, pp. 6-23, September 2006. The first time this author became aware of behavioral finance was in June 1998. At that point of time, there was no apparent or precise source of information for a new scholar interested in the field to select a research starting point. It was the author's intention, by writing this paper, to provide a research starting point to new scholars, and inspire them to conduct research in this field. The author of this paper provides the reader with a discussion concerning the discipline of behavioral finance with the new scholar in mind. Behavioral finance investigates the cognitive factors and emotional issues that individuals, financial experts, and traders exhibit within the securities markets.
