Financial Decision Making ─ Understanding Chinese Investment Behavior

This book sheds insight into financial decision making and lays down the major biases in human behavioral decision making, such as over-confidence, naïve extrapolation, attention, risk aversion, and how they lead investors and corporations to make considerable mistakes in investment.

The book draws from a large body of literature from psychology, social psychology, and most importantly, behavioral economics and behavioral finance. It also looks at the progress in behavioral finance research in the past decades and includes research outputs based on retail and institutional investors from the U.S., China, and many other international financial markets.

This book focuses China’s financial reforms and economic transition and uses many cases and results on China to highlight the importance of behavioral finance and investor education. It provides the much needed in-depth understanding of Chinese capital market.

Ning Zhu is?Deputy Dean?and?Professor of Finance at the Shanghai Advanced Institute of Finance, Faculty Fellow at the Yale University International Center for Finance, and?Special Term Professor of Finance at University of California, Davis and at Guanghua School of Management at Beijing University. Prior to coming back to Asia, he was a tenured Professor of Finance at University of California. Professor Zhu is an expert on behavioral finance, investments, corporate finance, and the Asian financial markets. He has published numerous articles in leading journals in the finance, economics, management and legal fields. In addition to his academic research, Professor Zhu helps asset management companies in a wide range of capacities.