Description
The psychological drivers of herding behavior and market overreaction shape current financial markets, often leading to price volatility and mispriced assets. Investors who are influenced by emotions may copy the actions of others, resulting in collective decision-making that can amplify market trends. This phenomenon is further influenced by cognitive biases, such as confirmation bias and overconfidence, which can cloud judgment and lead to irrational excitement or panic selling. Understanding these psychological mechanisms is essential for investors and market analysts alike, as it provides insights into the dynamics of market behavior and contributes to more informed investment strategies and risk management practices.
Psychological Drivers of Herding and Market Overreaction explores the psychological factors that drive herding behavior and market overreaction in financial markets. It integrates key psychological theories with financial market analysis to explain why investors follow the crowd and how these collective behaviors impact market stability. This book covers topics such as collective intelligence, financial markets, and herding behavior, and is a useful resource for computer engineers, psychologists, marketers, business owners, economists, academicians, scientists, and researchers.
Author's/Editor's Biography
Ooi Loang (Ed.)
Ooi Kok Loang, LLM, CMIIA, CIA, is with the Department of Finance at the University of Malaya, renowned for his expertise in behavioural finance and capital markets. His professional journey includes significant roles as an auditor and business consultant at KPMG (Big 4 Audit Firms) and Deputy Dean at two prestigious private universities. Dr. Ooi holds a Master in Finance and a PhD in Behavioral Finance from Universiti Sains Malaysia (QS137), a Master of Laws (Business Law) from the International Islamic University Malaysia (QS Top 300 by subject), and is a US Certified Internal Auditor. With a strong portfolio of publications and active contributions as a reviewer for top international SCI and Scopus-indexed journals, Dr. Ooi is keen to mentor passionate PhD students, offering a vibrant environment for research and academic excellence.