Handbook of Financial Decision Making: (Research Handbooks in Money and Finance series)

This accessible Handbook provides an essential entry point for those with an interest in the increasingly complex subject of financial decision making. It sheds light on new paradigms in society and the ways that new tools from private actors have affected financial decision making. Covering a broad range of key topics in the area, leading researchers summarize the state of the art in their respective areas of expertise, delineating their projections for the future. Chapters cover both more traditional fields, such as regulation and the role of analysts, and emerging fields, such as artificial intelligence, neurofinance and robo-advising. Organized into three sections, the Handbook first deals with the natural and environmental factors that impact financial decision making, before moving on to examine the institutions, frameworks, and tools created for the purpose of aiding the decision-making process. It concludes by looking at financial advisors, household finance and enabling financial decision making. This Handbook will be of great value to scholars and researchers invested in the fields of finance, economic psychology, business management and development. Its comprehensive introduction to current research in accounting and finance alongside multiple topics on technology and decision making will be invaluable for practitioners, policy makers and regulators.

Table of Contents:
Contents: PART I INTRODUCTION Financial decision making: an overview 2 Gilles Hilary and David McLean PART II NATURAL AND ENVIRONMENTAL FACTORS THAT IMPACT FINANCIAL DECISION MAKING Part II.1 Natural Factors 1 Limited attention and financial decision-making 17 Alexander Nekrasov, Siew Hong Teoh, and Shijia Wu 2 Seasonality in stock returns and government bond returns 36 Mark J. Kamstra and Lisa A. Kramer 3 Preference for lottery-like securities 63 Turan G. Bali and Quan Wen 4 Neurofinance 91 Elise Payzan-LeNestour Part II.2 Environmental, Social, and Cultural Factors 5 Corporate culture: a review and directions for future research 112 Jillian Grennan and Kai Li 6 Geography and financial decision making 133 Qinghai Wang 7 Language in financial disclosures 154 Natasha Bernhardt, Mandy T. Ellison, Kristina M. Rennekamp, and Brian J. White 8 The impact of word-of-mouth communication on investors’ decisions and asset prices 171 Byoung-Hyoun Hwang 9 The role of media in financial decision-making 192 Kenneth R. Ahern and Joel Peress PART III INSTITUTIONS, FRAMEWORKS, AND TOOLS Part III.1 Institutions 10 Disclosure regulation: past, present, and future 215 S.P. Kothari, Liandong Zhang, and Luo Zuo 11 The audit in a modern economy 235 W. Robert Knechel and Eddie Thomas Part III.2 Frameworks 12 Accounting and prices 256 Steven J. Monahan 13 Managerial accounting and decision-making 277 Satish Joshi and Ranjani Krishnan 14 Social responsibility in business and finance 296 Hao Liang and Tran Bao Phuong Nguyen Part III.3 Tools: Computer-Based Advising 15 Artificial intelligence in financial decision-making 315 Allen H. Huang and Haifeng You 16 IT meets finance: financial decision-making in the digital era 336 Francesco D’Acunto and Alberto G. Rossi PART IV SETTINGS: ADVISORS AND DECISION MAKING 17 Financial analysts 356 Daniel Bradley 18 Household financial decision making 375 Sumit Agarwal and Nithin Mannil 19 Behavioral finance and retirement planning in defined contribution plans 411 Julie Agnew Index 432

About the Author :
Edited by Gilles Hilary, Houston Professor of Accounting and David McLean, William G. Droms Professor of Finance, McDonough School of Business, Georgetown University, US

Review :
'With the rise of new kinds of data and approaches, the field of financial decisions is developing very rapidly. This volume provides excellent overviews of these developments with perspectives from leading experts in the field.' ‘This is an excellent collection of lucidly written articles on recent developments in finance that highlight how the scope of the field is rapidly changing. The book will be a valuable source of information and inspiration for advanced undergraduate and graduate students, and will help draw more people to the field of finance. I will definitely be recommending it to my students.’