The Biology of Investing
by John R. Nofsinger, Corey A. Shank
1st Edition
Publisher: Routledge
Book Details
| Print ISBN | 9780367443399 |
| eText ISBN | 9781000050202 |
| Publisher | Routledge |
| Publishing Year | 2020 |
| Edition | 1st Edition |
| Language | English |
| Pages | 218 |
The textbook The Biology of Investing, 1st Edition, provides a comprehensive view of how human biology influences financial decision-making. It brings together findings from across scientific disciplines to explore why economic preferences vary among individuals.
The text examines how biological nature interacts with socioeconomic nurture, demonstrating that physical factors shape financial behavior alongside external experiences. Its broad coverage addresses how genetic markers, neurological processes, and circulating hormones relate to financial choices and risk-taking.
This volume is designed for postgraduate and upper-level undergraduate students of investing, behavioral economics, and behavioral finance. It also serves as a resource for financial analysts, advisors, and market participants seeking to understand investor decision-making.
Table of Contents
Chapter 1: Biology and Psychology in Finance
- • Nature vs Nurture
- • What Can We Learn from the Financial Decisions of Twins?
- • Investment of Adoptees and the Human Genome
- • Do Men and Women Invest Differently?
- • Physiology
- • Brain Function and Financial Decisions
- • The Influence of Hormones on Financial Risk-Taking
- • Sleep, Coffee, and Investing
- • How Wellness Influences Financial Decisions
- • Cognitive Outcomes
- • The Emotional and Moody Investor
- • Environmental Factors in Financial Decision-Making
- • Personality and Investing
- • Intelligence and Investment Performance
- • Cognitive Aging and Diminished Decision-Making
- • A Possible Future
- • Notes
Chapter 2: Genetics: Twin Investment Behavior
- • Twin Research: Nature, Nurture, and Unique Experiences
- • Saving and Homeownership
- • Saving
- • Homeownership
- • Risk Attitudes
- • Investing
- • Stock Market Participation
- • Pension Choices
- • Investing Style: Value versus Growth
- • Behavioral Biases
- • Well-being: Giving and Happiness
- • Giving
- • Happiness
- • Summary
- • Questions
- • Notes
Chapter 3: More Genetics: Investments of Adoptees and the Human Genome
- • Adoption
- • Introduction to Adoption Studies: Education and Income
- • Investing Decisions
- • Genome
- • The Genome-wide Association Method
- • Investing
- • Risk Aversion
- • Summary
- • Questions
- • Notes
Chapter 4: Do Men and Women Invest Differently?
- • Determinants of Gender Differences
- • Gender Biology
- • Societal Differences
- • Financial Experimental Research
- • Retirement Accounts
- • Trading Behavior
- • Gender in Corporate Finance
- • Nature or Social Norms?
- • Feminism and Masculinity
- • Financial Literacy
- • The Gender of Others
- • Summary
- • Questions
- • Notes
Chapter 5: Brain Function and Financial Decisions
- • The Brain
- • Anatomy of the Brian
- • Neurotransmitters
- • Types of Decision Processes
- • Economic Decisions and the Brian
- • Financial Risk and Reward
- • Evidence from Brain Damage
- • Biological Foundations of Behavioral Finance
- • Genoeconomics
- • Genoeconomics Research
- • Genes and Receptors
- • DRD4 and Financial Decision Making
- • MAOA and Financial Decision Making
- • Summary
- • Questions
- • Notes
Chapter 6: The Influence of Hormones on Financial Risk Taking
- • Hormones
- • Hormonal Physiology
- • Circulating Testosterone and Cortisol Levels
- • Testosterone and Economics Risk Taking
- • Cortisol and Economic Risk Taking
- • The Dual Hormone Hypothesis
- • Testosterone, Cortisol, and Financial Decisions
- • Testosterone Proxies
- • 2D:4D Ratio and Facial Masculinity
- • Testosterone Proxies and Economic Risk Taking
- • Testosterone Proxies and Financial Decision Making
- • Testosterone Proxy Validity
- • Summary
- • Questions
- • Notes
Chapter 7: Sleep, Coffee, and Investing
- • Sleep Physiology
- • Sleep and Economic Risk Taking
- • Sleep, Economic Risk Taking, and Brain Activation
- • Sleep and Financial Decisions
- • Country-wide Analysis
- • Individual Focused Experiments
- • Sleep Deprivation, Stimulants and Risk Taking
- • Summary
- • Questions
- • Notes
Chapter 8: How Wellness Influences Financial Choices
- • Health and Obesity
- • Exercise and Diet
- • Physical Health and Financial Decisions
- • Health and Portfolio Choice
- • Health and Risk Taking—Experiment Evidence
- • Employee Health and Company Performance
- • Society Illness and Stock Market Performance
- • Mental Health and Financial Decisions
- • The Impact of Finance and Health
- • Summary
- • Questions
- • Notes
Chapter 9: The Emotional and Moody Investor
- • Emotions, Mood, and Physiology
- • Emotions and Economic Decisions
- • Physiological Response to Economic Decisions
- • Emotions, Mood, and Experimental Finance
- • Loss Aversion and Affect
- • Affect and Ethical Decision Making
- • Aggregate Mood and the Stock Market
- • Summary
- • Questions
- • Notes
Chapter 10: How Environmental Factors Impact Financial Decisions
- • Weather, Mood, and Financial Decisions
- • Weather and Mood
- • Weather and Experimental Finance
- • Weather and Stock Markets
- • Seasonal Affective Disorder
- • Seasonal Affective Disorder and Physiology
- • Seasonal Affective Disorder and Experimental Finance
- • Seasonal Affective Disorder and Stock Markets
- • Seasonal Affective Disorder and Financial Analysts
- • Air Pollution, Cognition, and Financial Decisions
- • Air Pollution and Cognition
- • Air Pollution and the Stock Market
- • Allergies and Financial Decisions
- • Natural Disasters and Financial Decision Making
- • Natural Disasters and Behavior
- • Natural Disasters and Financial Decisions
- • Terrorism and the Stock Market
- • Terrorism and Behavior
- • Summary
- • Questions
- • Notes
Chapter 11: The Personality of a Successful Investor
- • Big Five Personality Traits and Financial Decisions
- • Big Five Personality Traits
- • Big Five Personality Traits and Neural Activity
- • Big Five Personality Traits and Experimental Risk Taking
- • Big Five Personality Traits and Experimental Investments
- • Big Five Personality Traits and Investments
- • Big Five Personality Traits and Corporate Finance
- • Big Five Personality Traits and Personal Finances
- • The Dark Triad and Financial Decisions
- • The Dark Triad
- • The Dark Triad and Business
- • The Underlying Conditions of the Dark Triad
- • Noncognitive Abilities and Financial Decisions
- • Noncognitive Abilities
- • Noncognitive Abilities and Business
- • Overconfidence, Optimism, and Financial Decisions
- • Summary
- • Questions
- • Notes
Chapter 12: Types of Intelligence and Investment Performance
- • Types of Cognitive Processing
- • Cognitive Processing and Investing
- • IQ and Investing Decisions
- • Analytical versus Intuitive Thinking and Investing Decisions
- • Measuring Analytical and Intuitive Tendencies—Cognitive Reflection
- • Cognitive Reflection and Behavioral Biases
- • The Theory of Mind and Investing Decisions
- • How Each Type of Intelligence Impacts Investing Decisions
- • Summary
- • Questions
- • Notes
Chapter 13: Impaired Cognitive Function and Diminished Decision Making
- • Aging and Cognitive Ability
- • Decision Processing and Aging
- • Aging and Financial Literacy
- • Financial Knowledge
- • Seeking Financial Advice
- • Credit Choices
- • Aging and Financial Fraud
- • Cognitive Aging and Financial Fraud
- • Investment Decisions of Seniors
- • Aging and Financial Risk Aversion
- • Aging and Portfolio Construction and Performance
- • Aging and Behavioral Biases
- • Improving Decisions of Older Adults
- • Use It or Lose It
- • Summary
- • Questions
- • Notes
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