Psychology and the Financial Crisis of 2007-2008

By Nicholas Barberis. 2011

124 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/87e0217526ea196cc7062f28e070027f0467e755

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Citations in the corpus

Do investors exhibit behavioral biases in investment decision making? A systematic review (2018, background): “According to Barberis (2013a, 2013b), financial innovations are one of the measures to reduce the effects of psychological factors of the irrational behavior of investors. But care has to be taken, as it can be a double-edged weapon. If financial innovations fail, then it makes investors feel less c”
Individual Investor Perceptions and Behavior During the Financial Crisis (2013, background): “Thaler and Johnson (1990) as well as Barberis (2011) find that experiencing a number of consecutive losses reduces investors’ subsequent willingness to take risks.”
The Flight Home Effect: Evidence from the Syndicated Loan Market During Financial Crises (2012, background): “For example, Barberis (2010) suggests that after suffering losses, even professional asset managers employed by institutional investors or banks prefer to operate in more familiar environments.17 Interpretations of the empirical evidence based on an increase in risk aversion are consistent with the…”
CEO Overconfidence and Stock Price Crash Risk (2016, unknown): “…want to feel good about themselves, and it is hard to feel good about oneself if one is knowingly doing something that is potentially ruinous to others (Barberis 2011: 7) In addition, the economics and psychology literature suggests that people do not always gather data and form beliefs in an…”
Incentivizing Calculated Risk-Taking: Evidence from an Experiment with Commercial Bank Loan Officers (2012, unknown): “support of a behavioral view of performance pay in lending as suggested, for example, by Barberis (2012): incentives that reward origination do not merely affect the propensity to take on risk, but in fact distort loan officer judgment and the perception of credit risk.”
Looking for Someone to Blame: Delegation, Cognitive Dissonance, and the Disposition Effect (2014, unknown): “Another proposed explanation has been realization utility (Barberis and Xiong (2009, 2012), Ingersoll and Jin (2013)), where traders gain utility from the act of selling at a gain, rather than from receiving information about the gain.”