Emotion and Finance: A Literature Review

• Main Authors: Liu, Chun-Yen, 劉俊延
• Other Authors: Chang, Chia-Chi
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/29283594478324257875

碩士 === 國立交通大學 === 管理科學系所 === 98 === There are some anomalies in the market and hard to explanted by traditional financial theory. Scholars try to use other theory in different field to solve financial problem. The most famous example is behavioral finance with the combination of finance and psychology. Scholars find out that emotion is one of the most important factors in the model of market returns. Therefore, I try to conclude some effect and theory for financial researches in this article. Firstly, I introduce some definitions of emotion. Secondly, I introduce discussing cognitive dissonance, disposal effect, herding, mental account and some research in empirical finance. By using these theories, I give some explanations in empirical researches. Thirdly, I give some advice for companies, fund managers, and individual investors, then think of a new job named “financial consultant.” Finally, I try to point out some suggestions in the future researches.