Purpose – The purpose of this paper is to investigate the implications of human consciousness relative to financial risk perceptions. Design/methodology/approach –After conceptually identifying that risk perceptions qualify as a Qualia, survey data are gathered from investment experts to...

Purpose – The purpose of this paper is to discuss the origin of variance and beta as risk measures and to identify their shortcomings as perceived risk metrics. Design/methodology/approach – The paper analyses seminal literature from economics, psychology, and neuroscience that have...

Trust is an essential ingredient of the investment process because investing is complex, the world contains irreducible uncertainty, and humans are naturally predisposed to cooperate. Traditional financial models inappropriately treat trust as probability or implicitly ignore it. This paper...

Purpose – The purpose of this paper is to present a behavioral explanation of excess stock price volatility relative to present value theory. Design/methodology/approach – The conceptual basis is the impact of affect on investor decisions. The empirical tests involve survey data collected...

Purpose – The purpose of this paper is to present a behavioral explanation of excess stock price volatility relative to present value theory. Design/methodology/approach – The conceptual basis is the impact of affect on investor decisions. The empirical tests involve survey data collected...

It is the position of this paper that recent financial crises have been amplified, if not created, by the sin of professional financial untrustworthiness. Trust is the bedrock of financial behaviour and without trust, financial markets fail as efficient resource allocators. Sin is identified as...