Author Description

"Behavioural Finance: A Comprehensive Guide for Management Students" provides an in-depth exploration of behavioural finance, a field that examines how cognitive biases, emotions, and social factors influence financial decision-making and market dynamics. Written in a clear and concise style, this book is designed to be accessible to management students and general readers who are interested in understanding the psychological aspects of finance. The book is organized into ten chapters, covering a logical sequence of topics related to behavioural finance. Introduction to Behavioural Finance: This chapter introduces the foundations of finance and contrasts traditional finance with behavioural finance. It discusses the nature, scope, and significance of behavioural finance and provides an overview of various market strategies. Understanding Risk and Decision Making: This chapter delves into expected utility theory, risk attitude, risk preferences, and the Allais Paradox. It also covers the building blocks of behavioural finance, illustrating the importance of these concepts in financial decision-making. Prospect Theory and Decision Making: This chapter explores prospect theory, framing effects, mental accounting, rationality in investment decisions, and Ellsberg's paradoxes. It highlights the role of these theories in understanding investor behaviour and market anomalies. Investor Sentiments and Market Bubbles: This chapter investigates the role of investor sentiments in financial markets, the formation of market bubbles, the psychological factors contributing to bubble creation, and historical case studies of market bubbles. Heuristics and Biases in Financial Decision Making: This chapter introduces heuristics and biases, overconfidence bias, representativeness and availability heuristics, and anchoring and adjustment heuristic. It explains how these cognitive shortcuts can impact financial decisions and market outcomes. Fear, Greed, and Emotions in Finance: This