Behavior and asset markets

Individual decisions, emotions and fundamental value trajectories

A.G. Breaban

Research output: ThesisDoctoral ThesisScientific

395 Downloads (Pure)

Abstract

This thesis consists of four chapters related to individual- and market- level behavior in experimental financial markets. The first three chapters analyze asset pricing and, in particular, stylized facts such as bubbles and crashes, as well as some of the factors that influence such phenomena. In particular, the first chapter focuses on the effect of the fundamental value time trajectory of an asset, as well as the role of individual traders’ characteristics on aggregate market behavior. The second and third chapters analyze the role of emotions in asset pricing and individual trading decisions. By measuring traders’ emotions in real time with facereading software, it is possible to link emotional responses to market activity.
The fourth chapter of this thesis is focused on behavioral biases in mutual fund investment, where under certain combinations of expected return and risk, suboptimal asset allocation is observed. This chapter also evaluates the effect that the structure of the information provided has on an investor’s behavior and consequently, on the demand for funds.
Original languageEnglish
QualificationJoint degree
Awarding Institution
  • Tilburg University
  • Jaume I University
Supervisors/Advisors
  • Noussair, Charles, Promotor
  • Barreda Tarrazona, I.J., Promotor, External person
Award date19 Dec 2014
Place of PublicationTilburg
Publisher
Print ISBNs9789056684235
Publication statusPublished - 2014

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Traders
Emotion
Asset markets
Asset pricing
Trajectory
Fundamental values
Influence factors
Crash
Asset allocation
Behavioral biases
Bubble
Market activity
Stylized facts
Financial markets
Investor behavior
Assets
Software
Market behavior
Emotional response
Mutual funds

Cite this

Breaban, A. G. (2014). Behavior and asset markets: Individual decisions, emotions and fundamental value trajectories. Tilburg: CentER, Center for Economic Research.
Breaban, A.G.. / Behavior and asset markets : Individual decisions, emotions and fundamental value trajectories. Tilburg : CentER, Center for Economic Research, 2014. 144 p.
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Breaban, AG 2014, 'Behavior and asset markets: Individual decisions, emotions and fundamental value trajectories', Joint degree, Tilburg University, Tilburg.

Behavior and asset markets : Individual decisions, emotions and fundamental value trajectories. / Breaban, A.G.

Tilburg : CentER, Center for Economic Research, 2014. 144 p.

Research output: ThesisDoctoral ThesisScientific

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Breaban AG. Behavior and asset markets: Individual decisions, emotions and fundamental value trajectories. Tilburg: CentER, Center for Economic Research, 2014. 144 p. (CentER Dissertation Series).