Earticle

초록

영어

Behavioral finance encompasses research that gives up the traditional assumptions of expected utility maximization with rational investors in an efficient market. It is defined as the application of psychology to financial decision making and financial markets. Based on this definition, our review essay summarizes recent work of behavioral studies in Korean capital markets along with some pioneering papers in the behavioral finance literature. In Korea, behavioral studies are in their early stages of development. First, we start with discussion of the limits of arbitrage as a foundation of behavioral finance. We discuss the limits of arbitrage to explain why Friedman’s (1953) paradigm of arbitrage may not eliminate pricing errors in capital markets. Second, the prospect theory of Kahneman and Tversky (1979) and its related empirical results are reviewed. Third, empirical results related to overreaction and underreaction are addressed. Fourth, investors’ trading behaviors and return patterns as influenced by psychological biases are discussed. In conclusion, we address several areas to explore as promising research fields. First, experimental investigation with psychologists is warranted. Second, regional anomalies need be explored from behavioral perspectives. Investors’ behavior across cultures is also an interesting topic in behavioral finance. Third, collaborative work with other business areas is needed. Finally, corporate behavioral finance has much room for further investigation.

목차

Abstract
 Ⅰ. Introduction
 Ⅱ. Foundation of Behavioral Finance
  1. Beginning of Behavioral Finance
  2. Limits of Arbitrage
 Ⅲ. Prospect Theory and Empirical Results
  1. Prospect Theory
  2. Psychological Bias of Gamblers
  3. Disposition Effect
 Ⅳ. Over-reaction and Under-reaction
  1. Over-reaction and Under-reaction Models
  2. Profitability of Contrarian Strategy in Korea
  3. Profitability of Momentum Strategy in Korea
  4. Other Anomalies Related to Over-reaction or Under-reaction
 Ⅴ. Trading and Return Behavior with Psychological Bias
  1. Investor Trading Behavior
  2. Corporate Behavioral Finance
  3. Investor Sentiment and Corporate Event
  4. Irrational Return Behavior
 Ⅵ. Conclusion
 References

키워드

저자

• Keunsoo Kim [ Associate Professor, Graduate School of Pan-Pacific International Studies, Kyung Hee University ]
• Jinho Byun [ Associate Professor, Ewha School of Business, Ewha Womans University ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330