Behavioral Corporate Finance (Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate)
Behavioral Corporate Finance (Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate)
Behavioral Corporate Finance identifies the key psychological obstacles to value maximizing behavior, along with steps that managers can take to mitigate the effects of these obstacles. The main goal of the book is to help students learn how to put the traditional tools of corporate finance to their best use, and mitigate the effects of psychological obstacles that reduce value.
User Ratings and Reviews
4 Stars Fine book, worthless as a text
This book was required for a course on Corporate Finance. The focus, however, is on the psychological aspects of corporate financial decision-making, resulting in no useful formulae or job aids. The take-away from this book is that financial managers use intuition and heuristics as much and as generally successfully as by NPV analysis which constitute the traditional approach. I would not recommend this book as a text.
5 Stars Excellent Book
This book is very informative and easy to read. It is written in a way that won’t bore you at all. I have tried to read several books about behavioral finance but I found out they’re either too long or boring which made me lose interest in the first chapter. Though, with this book, it didn’t happen as it is well-written and very interesting. The examples, given to illustrate the points were quite interesting and simple to understand. I very much enjoyed reading about behavioral finance and the biases that managers, investors and financial analysts have when making their decisions. The book is divided into 11 chapters. I highly recommend this books for people who want to know more about behavioral finance.
1. Behavioral Foundations
2. Valuation
3. Capital Budgeting
4. Perceptions about Risk & Return.
5. Inefficient Markets and Corporate Decisions
6. Capital Structure
7. Dividend Policy
8. Agency Conflicts and Corporate Governance
9. Group Process
10. Mergers & Acquisitions
11. Applications of Real-option techniques to Capital Budgeting and Capital Structure(only available at the book’s site)
5 Stars Easy to Read, Interesting (required college reading)
For a required textbook for a college class, this was a very easy to read, interesting book. Short to the point chapters with good examples. Consider yourself lucky if this ends up being one of your required readings.
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