FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING?
The present paper reviews two fundamental investing paradigms, which have had a substantial impact on the manner investors tend to develop their own strategies. specifically, the study elaborates on efficient market hypothesis (emh), which, despite remaining most prominent and popular until the 1990...
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| Format: | Article |
| Language: | English |
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University of Pitesti
2012-12-01
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| Series: | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
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| Online Access: | http://economic.upit.ro/repec/pdf/2012_2_2.pdf |
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| _version_ | 1849397361041735680 |
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| author | George BOROVAS Androniki KATARACHIA Anastasios KONSTANTINIDIS Maria Eleni VOUTSA |
| author_facet | George BOROVAS Androniki KATARACHIA Anastasios KONSTANTINIDIS Maria Eleni VOUTSA |
| author_sort | George BOROVAS |
| collection | DOAJ |
| description | The present paper reviews two fundamental investing paradigms, which have had a substantial impact on the manner investors tend to develop their own strategies. specifically, the study elaborates on efficient market hypothesis (emh), which, despite remaining most prominent and popular until the 1990s, is considered rather controversial and often disputed, and the theory of behavioural finance, which has increasingly been implemented in financial institutions. based on an extensive survey of behavioural finance and emh literature, the study demonstrates, despite any assertions, the inherent irrationality of the theory of efficient market, and discusses the potential reasons for its recent decline, arguing in favor of its replacement or co-existence with behavioural finance. in addition, the study highlights that the theory of behavioural finance, which endorses human behavioral and psychological attitudes, should become the theoretical framework for successful and profitable investing. |
| format | Article |
| id | doaj-art-f90a9ed51be445a38b14bcac79d8d906 |
| institution | Kabale University |
| issn | 1583-1809 |
| language | English |
| publishDate | 2012-12-01 |
| publisher | University of Pitesti |
| record_format | Article |
| series | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
| spelling | doaj-art-f90a9ed51be445a38b14bcac79d8d9062025-08-20T03:39:00ZengUniversity of PitestiBuletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice1583-18092012-12-011121626FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING?George BOROVASAndroniki KATARACHIAAnastasios KONSTANTINIDISMaria Eleni VOUTSAThe present paper reviews two fundamental investing paradigms, which have had a substantial impact on the manner investors tend to develop their own strategies. specifically, the study elaborates on efficient market hypothesis (emh), which, despite remaining most prominent and popular until the 1990s, is considered rather controversial and often disputed, and the theory of behavioural finance, which has increasingly been implemented in financial institutions. based on an extensive survey of behavioural finance and emh literature, the study demonstrates, despite any assertions, the inherent irrationality of the theory of efficient market, and discusses the potential reasons for its recent decline, arguing in favor of its replacement or co-existence with behavioural finance. in addition, the study highlights that the theory of behavioural finance, which endorses human behavioral and psychological attitudes, should become the theoretical framework for successful and profitable investing.http://economic.upit.ro/repec/pdf/2012_2_2.pdfEfficient Market HypothesisBehavioural financeInvestor psychologyInvestment portfolio |
| spellingShingle | George BOROVAS Androniki KATARACHIA Anastasios KONSTANTINIDIS Maria Eleni VOUTSA FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice Efficient Market Hypothesis Behavioural finance Investor psychology Investment portfolio |
| title | FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? |
| title_full | FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? |
| title_fullStr | FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? |
| title_full_unstemmed | FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? |
| title_short | FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING? |
| title_sort | from efficient market hypothesis to behavioural finance can behavioural finance be the new dominant model for investing |
| topic | Efficient Market Hypothesis Behavioural finance Investor psychology Investment portfolio |
| url | http://economic.upit.ro/repec/pdf/2012_2_2.pdf |
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