Behavioral corporate finance: decisions that create value
Gespeichert in:
| 1. Verfasser: | |
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| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Boston [u.a.]
McGraw-Hill/Irwin
2007
|
| Schriftenreihe: | The McGraw-Hill/Irwin series in finance, insurance, and real estate
|
| Schlagworte: | |
| Online-Zugang: | Publisher description Table of contents only Inhaltsverzeichnis |
| Beschreibung: | Includes bibliographical references and index |
| Beschreibung: | 203 S. graph. Darst. 23 cm |
| ISBN: | 0072848650 |
Internformat
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| 100 | 1 | |a Shefrin, Hersh |d 1948- |e Verfasser |0 (DE-588)122258665 |4 aut | |
| 245 | 1 | 0 | |a Behavioral corporate finance |b decisions that create value |c Hersh Shefrin |
| 264 | 1 | |a Boston [u.a.] |b McGraw-Hill/Irwin |c 2007 | |
| 300 | |a 203 S. |b graph. Darst. |c 23 cm | ||
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| 490 | 0 | |a The McGraw-Hill/Irwin series in finance, insurance, and real estate | |
| 500 | |a Includes bibliographical references and index | ||
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| 650 | 7 | |a Financieel management |2 gtt | |
| 650 | 7 | |a Finanças das empresas |2 larpcal | |
| 650 | 7 | |a Psychologische aspecten |2 gtt | |
| 650 | 7 | |a Tomada de decisão (administração executiva) (aspectos psicológicos) |2 larpcal | |
| 650 | 4 | |a Psychologie | |
| 650 | 4 | |a Corporations |x Finance | |
| 650 | 4 | |a Decision making |x Psychological aspects | |
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Datensatz im Suchindex
| _version_ | 1804136214722248704 |
|---|---|
| adam_text | Brief Contents
Preface xiv
Acknowledgments xvii
1 Behavioral Foundations I
2 Valuation 20
3 Capital Budgeting 38
4 Perceptions about Risk and Return 56
5 Inefficient Markets and Corporate Decisions 74
6 Capital Structure 92
7 Dividend Policy 110
8 Agency Conflicts and Corporate
Governance 127
9 Group Process 145
10 Mergers and Acquisitions 161
11 Application of Real Option Techniques to Capital Budgeting and
Capital Structure (only available at www.mhhe.com/shefrin) 181
GLOSSARY 183
ENDNOTES 186
INDEX 195
vii
Table of Conter
Preface xiv
Acknowledgments xvii
Chapter 1
Behavioral Foundations 1
1.1 Traditional Treatment of Corporate Financial
Decisions 1
1.2 Behavioral Treatment of Corporate Financial
Decisions 2
1.3 Illustrative Example 3
1.4 Biases 3
Excessive Optimism 3
Overconfidence 6
Confirmation Bias 7
Illusion of Control 8
1.5 Heuristics 8
Representativeness 8
Availability 9
Anchoring and Adjustment 9
Affect Heuristic 10
1.6 Framing Effects 10
Loss Aversion 11
Aversion to a Sure Loss 13
1.7 Debiasing 15
Summary 16
Additional Behavioral Readings 16
Key Terms 16
Explore the Web 17
Chapter Questions 17
Additional Resources and Materials
for Chapter 1 are available at
www.mhhe.com/shefrin 18
Minicase: Wall Street of the Southwest 18
Case Analysis Questions 18
How Psychologists Identify Behavioral
Phenomena Al 1
viii
its
A1.1 Biases Al 1
Excessive Optimism Al 1
Overconfidence A1 3
Confirmation Bias A1 5
Illusion of Control A1 6
A1.2 Heuristics A1 7
Representativeness A1 7
Availability A1 9
Anchoring and Adjustment Al 10
Interacting Phenomena Al 11
A1.3 Framing Effects A1 12
Attitudes toward Risk and Loss Al 12
Aversion to a Sure Loss Al 13
Narrow Framing Bias A1 15
Chapter 2
Valuation 20
2.1 Traditional Approach to Valuation 20
2.2 Valuation Heuristics 21
P/E Heuristic 21
PEG Heuristic 21
Price to Sales Heuristic 22
2.3 A CFO s Reliance on Valuation Heuristics 22
2.4 How Analysts Value Firms:
An Illustrative Example 23
Analyst Mary Meeker 23
Mary Meeker s Target Prices for eBay 24
2.5 Biases 27
Biases and Heuristics 27
Biases and Framing Effects 27
2.6 Other Sources of Bias 31
Growth Opportunities 31
PEGandDCF 32
The 1/n Heuristic 33
Excessive Optimism 33
2.7 Agency Conflicts 34
Summary 35
Additional Behavioral Readings 35
Key Terms 35
Explore the Web 35
Chapter Questions 36
Additional Resources and Materials for Chapter 2
are available at www.mhhe.com/shefrin 37
Minicase: Palm Inc. 37
Case Analysis Questions 37
Computing Free Cash Flows and Growth
Opportunities A2 1
A2.1 eBay s Financial Statements A2 1
A2.2 Free Cash Flows A2 2
Deriving Free Cash Flows A2 3
Interpreting Sources of Free Cash Flow A2 4
Interpreting Uses of Free Cash Flow A2 4
Cash Earnings A2 4
A2.3 Confusing Growth Opportunities
and Earnings Growth A2 5
PEG A2 5
The Market s Judgment
about eBay s (N)PVGO A2 6
Book to Market Equity: What Makes eBay a
Growth Stock? A2 7
EVA and Value A2 7
The Growth Opportunities Formula A2 8
Chapter 3
Capital Budgeting 38
3.1 Traditional Treatment
of Capital Budgeting 38
3.2 Survey Evidence 39
Project Adoption Criteria 39
The Importance of Intuition 40
3.3 The Affect Heuristic 40
Choice, Value, and the Affect Heuristic 41
3.4 Overconfidence 42
Psychological Determinants
of Overconfidence 42
Illustrative Example of Overconfident Capital
Budgeting 43
3.5 Excessive Optimism in Capital Budgeting 44
Excessive Optimism in Public Sector Projects 44
Excessive Optimism in Private Sector
Projects 44
Table of Contents ix
Psychological Determinants
of Excessive Optimism 45
Agency Conflict Determinants of Excessive
Optimism 46
3.6 Reluctance to Terminate Losing Projects 48
Aversion to a Sure Loss 48
Escalation of Commitment 49
3.7 Confirmation Bias: Illustrative Example 50
Behavioral Bias and Agency Conflicts
at Syntex 50
Summary 52
Additional Behavioral Readings 53
Key Terms 53
Explore the Web 53
Chapter Questions 53
Additional Resources and Materials for Chapter 3
are available at www.mhhe.com/shefrin 54
Minicase: CompuSys 54
Case Analysis Questions 55
Excessive Optimism, Framing Effects, and Cost
Accounting A3 1
A3.1 Using Forecasts Prepared by Others A3 1
Implications A 3 3
A3.2 Cost Accounting A3 3
The Framing of Costs A3 3
Heuristics A3 4
Chapter 4
Perceptions about Risk and Return 56
4.1 Traditional Treatment of Risk and Return 56
4.2 Risk and Return for Individual Stocks 57
Example 57
Risk, Representativeness, and Bias 58
Evidence That Executives Rely on
Representativeness 59
Sign of Relationship between Risk and Return 59
The Affect Heuristic 60
Heuristics, Biases, and Factors 61
Analysts Return Expectations 62
4.3 Financial Executives and the Market Risk
Premium 64
Die Rolling 64
Extrapolation Bias: The Hot Hand Fallacy 65
Biased Financial Executives Estimates 66
x Table of Contents
4.4 Investor Biases in Estimating the Market Risk
Premium 66
Individual Investors and the Hot Hand Fallacy 66
Professional Investors and Gambler s Fallacy 66
4.5 Executives, Insider Trading, and Gambler s
Fallacy 68
4.6 Survey Evidence on Project Discount Rates 70
Summary 70
Additional Behavioral Readings 71
Key Terms 71
Explore the Web 71
Chapter Questions 72
Minicase: Intel and eBay 72
Case Analysis Questions 73
Chapter 5
Inefficient Markets and Corporate
Decisions 74
5.1 Traditional Approach to Market Efficiency 74
5.2 The Market Efficiency Debate: Anomalies 75
Long Term Reversals: Winner Loser Effect 76
Momentum: Short Term Continuation 76
Post Earnings Announcement Drift 77
5.3 Limits of Arbitrage 78
Pick a Number Game 78
5.4 Market Efficiency, Earnings Guidance,
and NPV 80
5.5 Stock Splits 81
Example: Tandy s Stock Split 81
5.6 To IPO or Not to IPO? 82
Three Phenomena 82
IPO Decisions 83
Summary 88
Additional Behavioral Readings 89
Key Terms 89
Explore the Web 89
Chapter Questions 89
Minicase: The IPO of Palm 90
Case Analysis Questions 91
Chapter 6
Capital Structure 92
6.1 Traditional Approach to Capital Structure 92
6.2 How Do Managers Choose Capital Structure in
Practice? 93
New Equity: Market Timing 93
New Debt: Financial Flexibility 94
Target Debt to Equity Ratio 95
Traditional Pecking Order 96
6.3 Behavioral APV 96
Perception of Overvalued Equity: New Issues 96
Perception of Undervalued Equity:
Repurchases 96
6.4 Financial Flexibility and Project
Hurdle Rates 98
Undervalued Equity: Cash Poor Firms Reject
Some Positive NP V Projects 98
Undervalued Equity for Cash Limited Firms:
Invest or Repurchase? 98
6.5 Sensitivity of Investment to Cash Flow 99
6.6 Excessive Optimism, Overconfidence,
and Cash 101
Identifying Excessively Optimistic, Overconfident
Executives 102
Assessing Value 104
6.7 Conflict Between Short Term and Long Term
Horizons 105
Summary 106
Additional Behavioral Readings 107
Key Terms 107
Explore the Web 107
Chapter Questions 107
Minicase: PSINet 109
Case Analysis Questions 109
Chapter 7
Dividend Policy 110
7.1 Traditional Approach to Payouts 110
7.2 Changes in Tax Policy 111
Changing Attitudes and Perceptions
about Risk 111
7.3 Dividends and Individual Investors:
Psychology 112
Self Control and Behavioral
Life Cycle Hypothesis 114
Dividends and Risk 115
Insights from Financial Columnists 116
7.4 Empirical Evidence 116
Contrast with Institutional Investors 117
7.5 How Managers Think about Dividends 118
Changing Payout Policies: Some History 118
Survey Evidence 119
7.6 Cateringto Inve stors Tastes
for Dividends 122
Citizens Utilities Company 123
Catering and Price Effects 123
Summary 124
Additional Behavioral Readings 124
Key Terms 125
Explore the Web 125
Chapter Questions 125
Minicase: Nipsco 126
Case Analysis Questions 126
Chapter 8
Agency Conflicts and
Corporate Governance 127
8.1 Traditional Approach
to Agency Conflicts 127
8.2 Paying for Performance in Practice 128
Low Variability 128
Dismissal 129
Stock Options 129
Shareholder Rights 129
Behavioral Phenomena 130
8.3 Overconfidence among Directors
and Executives 130
Overconfident Directors 130
Insufficient Variability in
Pay for Performance 130
Better Than Average Effect in the Boardroom:
Overpayment 131
8.4 Stock Option Based Compensation 132
Overvaluing Options 132
Casino Effect 132
8.5 Auditing: Agency Conflicts
and Prospect Theory 133
Traditional Perspective 134
8.6 Sarbanes Oxley 135
8.7 Fraud and Stock Options:
Illustrative Example 136
Table of Contents xi
Signs of Disease? 139
Summary 141
Additional Behavioral Readings 141
Key Terms 141
Explore the Web 141
Chapter Questions 142
Additional Resources and Materials for Chapter 8
are available at www.mhhe.com/shefrin 143
Minicase: Tyco 143
Case Analysis Question 144
Ethics and Fairness in Finance A8 1
A8.1 Unethical Behavior Starts Early A8 1
Why Students Cheat A8 2
Ethics and Psychology A8 2
A8.2 Ethics, Fairness, and Financial Market
Regulation A8 3
Behavioral Aspects of Fairness A8 4
Fairness and Confidence A8 6
Chapter 9
Group Process 145
9.1 Traditional Approach
to Group Process 145
9.2 Process Loss 145
9.3 General Reasons for Group Errors 146
Groupthink 146
Poor Information Sharing 146
Inadequate Motivation 147
9.4 Groupthink and Poor Information Sharing:
Illustrative Examples 147
Enron 148
Imagine Yourself in the Boardroom 151
WorldCom 152
PSINet 153
9.5 Polarization and the Reluctance to Terminate
Losing Projects 154
9.6 Debiasing: Illustrative Example 155
Standards 155
Planning 156
Compensation 156
Information Sharing 157
Stock Ownership 157
Summary 158
Additional Behavioral Readings 158
xii Table of Contents
Key Terms 158
Explore the Web 158
Chapter Questions 159
Additional Resources and Materials for Chapter 9
are available at www.mhhe.com/shefrin 160
Minicase: Shugart 160
Case Analysis Questions 160
Examples of Poor Group Process A9 1
A9.1 The Packard Foundation A9 1
Governance and Groups A9 1
A9.2 The Hewlett Foundation A9 4
A9.3 General Findings
about Investment Committees A9 4
A9.4 The Endowment Effect A9 5
A9.5 Motivation and Incentives:
Residual Income A9 6
Illustrative Example: AT T A9 7
Questions A9 8
Chapter 10
Mergers and Acquisitions 161
10.1 Traditional Approach to M A 161
10.2 The Winner s Curse 162
10.3 Optimistic, Overconfident Executives 162
10.4 Theory 165
Symmetric Information, Rational Managers, and
Efficient Prices 165
Excessive Optimism and Overconfidence When
Prices Are Efficient 166
Inefficient Prices and Acquisition
Premium 167
Asymmetric Information 168
10.5 AOL Time Warner:
The Danger of Trusting Market Prices 169
Strategy and Synergy 169
Valuation 169
Asset Writedown 171
Hubris 172
10.6 Hewlett Packard and Compaq Computer:
Board Decisions 173
The Merger Alternative 174
Psychological Basis for the Decision to Acquire
Compaq 174
Valuation 175
H P s Board Accepts Reality 176
Summary 177
Additional Behavioral Readings 177
Key Terms 178
Explore the Web 178
Chapter Questions 178
Additional Resources and Materials for Chapter 10
are available at www.mhhe.com/shefrin 179
Minicase: PSA Peugeot Citroen SA and
DaimlerChrysler AG 179
Case Analysis Question 180
Avoiding the Winner s Curse in M A A10 1
A10.1 Avoiding the Winner s Curse A10 1
Analytical Solution A10 1
A10.2 Two Monty Hall Problems A10 6
A10.3 Illustrative Example:
Cisco Systems A10 8
Cerent Corporation A10 9
A10.4 Illustrative Example: AT T A10 12
A10.5 Illustrative Example:
3COM and U.S. Robotics A10 13
Risks and Benefits A10 14
Outcome A10 14
Additional Questions A10 15
Chapter 11
Application of Real Option Techniques
to Capital Budgeting and Capital
Structure 181
The remaining contents of this chapter are
available at www.mhhe.com/shefrin 181
Chapter 11
Application of Real Option Techniques
to Capital Budgeting
and Capital Structure Al 1 1
11.1 Traditional Approach to Option
Theory All l
11.2 Do Managers Use Real Option
Techniques? All 2
Opaque Framing? All 2
11.3 Valuing Levered Equity All 5
Example A11 6
11.4 Conflicts of Interest All 9
Example: Small Scale Project Al 1 9
Asset Substitution All 10
Debt Overhang A11 11
Capital Structure Al 1 12
11.5 Overconfidence and Excessive
Optimism All 12
Overconfidence All 12
Excessive Optimism A11 13
Capital Structure A11 17
Table of Contents xiii
Summary A11 18
Additional Behavioral Readings Al 1 18
Key Terms Al 1 18
Explore the Web Al 1 19
Chapter Questions A11 19
Minicase: The Savings and Loan Crisis of the
1980s All 20
Case Analysis Question A11 21
Glossary 183
Endnotes 186
Index 195
|
| adam_txt |
Brief Contents
Preface xiv
Acknowledgments xvii
1 Behavioral Foundations I
2 Valuation 20
3 Capital Budgeting 38
4 Perceptions about Risk and Return 56
5 Inefficient Markets and Corporate Decisions 74
6 Capital Structure 92
7 Dividend Policy 110
8 Agency Conflicts and Corporate
Governance 127
9 Group Process 145
10 Mergers and Acquisitions 161
11 Application of Real Option Techniques to Capital Budgeting and
Capital Structure (only available at www.mhhe.com/shefrin) 181
GLOSSARY 183
ENDNOTES 186
INDEX 195
vii
Table of Conter
Preface xiv
Acknowledgments xvii
Chapter 1
Behavioral Foundations 1
1.1 Traditional Treatment of Corporate Financial
Decisions 1
1.2 Behavioral Treatment of Corporate Financial
Decisions 2
1.3 Illustrative Example 3
1.4 Biases 3
Excessive Optimism 3
Overconfidence 6
Confirmation Bias 7
Illusion of Control 8
1.5 Heuristics 8
Representativeness 8
Availability 9
Anchoring and Adjustment 9
Affect Heuristic 10
1.6 Framing Effects 10
Loss Aversion 11
Aversion to a Sure Loss 13
1.7 Debiasing 15
Summary 16
Additional Behavioral Readings 16
Key Terms 16
Explore the Web 17
Chapter Questions 17
Additional Resources and Materials
for Chapter 1 are available at
www.mhhe.com/shefrin 18
Minicase: Wall Street of the Southwest 18
Case Analysis Questions 18
How Psychologists Identify Behavioral
Phenomena Al 1
viii
its
A1.1 Biases Al 1
Excessive Optimism Al 1
Overconfidence A1 3
Confirmation Bias A1 5
Illusion of Control A1 6
A1.2 Heuristics A1 7
Representativeness A1 7
Availability A1 9
Anchoring and Adjustment Al 10
Interacting Phenomena Al 11
A1.3 Framing Effects A1 12
Attitudes toward Risk and Loss Al 12
Aversion to a Sure Loss Al 13
Narrow Framing Bias A1 15
Chapter 2
Valuation 20
2.1 Traditional Approach to Valuation 20
2.2 Valuation Heuristics 21
P/E Heuristic 21
PEG Heuristic 21
Price to Sales Heuristic 22
2.3 A CFO's Reliance on Valuation Heuristics 22
2.4 How Analysts Value Firms:
An Illustrative Example 23
Analyst Mary Meeker 23
Mary Meeker s Target Prices for eBay 24
2.5 Biases 27
Biases and Heuristics 27
Biases and Framing Effects 27
2.6 Other Sources of Bias 31
Growth Opportunities 31
PEGandDCF 32
The 1/n Heuristic 33
Excessive Optimism 33
2.7 Agency Conflicts 34
Summary 35
Additional Behavioral Readings 35
Key Terms 35
Explore the Web 35
Chapter Questions 36
Additional Resources and Materials for Chapter 2
are available at www.mhhe.com/shefrin 37
Minicase: Palm Inc. 37
Case Analysis Questions 37
Computing Free Cash Flows and Growth
Opportunities A2 1
A2.1 eBay's Financial Statements A2 1
A2.2 Free Cash Flows A2 2
Deriving Free Cash Flows A2 3
Interpreting Sources of Free Cash Flow A2 4
Interpreting Uses of Free Cash Flow A2 4
Cash Earnings A2 4
A2.3 Confusing Growth Opportunities
and Earnings Growth A2 5
PEG A2 5
The Market's Judgment
about eBay s (N)PVGO A2 6
Book to Market Equity: What Makes eBay a
Growth Stock? A2 7
EVA and Value A2 7
The Growth Opportunities Formula A2 8
Chapter 3
Capital Budgeting 38
3.1 Traditional Treatment
of Capital Budgeting 38
3.2 Survey Evidence 39
Project Adoption Criteria 39
The Importance of Intuition 40
3.3 The Affect Heuristic 40
Choice, Value, and the Affect Heuristic 41
3.4 Overconfidence 42
Psychological Determinants
of Overconfidence 42
Illustrative Example of Overconfident Capital
Budgeting 43
3.5 Excessive Optimism in Capital Budgeting 44
Excessive Optimism in Public Sector Projects 44
Excessive Optimism in Private Sector
Projects 44
Table of Contents ix
Psychological Determinants
of Excessive Optimism 45
Agency Conflict Determinants of Excessive
Optimism 46
3.6 Reluctance to Terminate Losing Projects 48
Aversion to a Sure Loss 48
Escalation of Commitment 49
3.7 Confirmation Bias: Illustrative Example 50
Behavioral Bias and Agency Conflicts
at Syntex 50
Summary 52
Additional Behavioral Readings 53
Key Terms 53
Explore the Web 53
Chapter Questions 53
Additional Resources and Materials for Chapter 3
are available at www.mhhe.com/shefrin 54
Minicase: CompuSys 54
Case Analysis Questions 55
Excessive Optimism, Framing Effects, and Cost
Accounting A3 1
A3.1 Using Forecasts Prepared by Others A3 1
Implications A 3 3
A3.2 Cost Accounting A3 3
The Framing of Costs A3 3
Heuristics A3 4
Chapter 4
Perceptions about Risk and Return 56
4.1 Traditional Treatment of Risk and Return 56
4.2 Risk and Return for Individual Stocks 57
Example 57
Risk, Representativeness, and Bias 58
Evidence That Executives Rely on
Representativeness 59
Sign of Relationship between Risk and Return 59
The Affect Heuristic 60
Heuristics, Biases, and Factors 61
Analysts 'Return Expectations 62
4.3 Financial Executives and the Market Risk
Premium 64
Die Rolling 64
Extrapolation Bias: The Hot Hand Fallacy 65
Biased Financial Executives' Estimates 66
x Table of Contents
4.4 Investor Biases in Estimating the Market Risk
Premium 66
Individual Investors and the Hot Hand Fallacy 66
Professional Investors and Gambler s Fallacy 66
4.5 Executives, Insider Trading, and Gambler's
Fallacy 68
4.6 Survey Evidence on Project Discount Rates 70
Summary 70
Additional Behavioral Readings 71
Key Terms 71
Explore the Web 71
Chapter Questions 72
Minicase: Intel and eBay 72
Case Analysis Questions 73
Chapter 5
Inefficient Markets and Corporate
Decisions 74
5.1 Traditional Approach to Market Efficiency 74
5.2 The Market Efficiency Debate: Anomalies 75
Long Term Reversals: Winner Loser Effect 76
Momentum: Short Term Continuation 76
Post Earnings Announcement Drift 77
5.3 Limits of Arbitrage 78
Pick a Number Game 78
5.4 Market Efficiency, Earnings Guidance,
and NPV 80
5.5 Stock Splits 81
Example: Tandy's Stock Split 81
5.6 To IPO or Not to IPO? 82
Three Phenomena 82
IPO Decisions 83
Summary 88
Additional Behavioral Readings 89
Key Terms 89
Explore the Web 89
Chapter Questions 89
Minicase: The IPO of Palm 90
Case Analysis Questions 91
Chapter 6
Capital Structure 92
6.1 Traditional Approach to Capital Structure 92
6.2 How Do Managers Choose Capital Structure in
Practice? 93
New Equity: Market Timing 93
New Debt: Financial Flexibility 94
Target Debt to Equity Ratio 95
Traditional Pecking Order 96
6.3 Behavioral APV 96
Perception of Overvalued Equity: New Issues 96
Perception of Undervalued Equity:
Repurchases 96
6.4 Financial Flexibility and Project
Hurdle Rates 98
Undervalued Equity: Cash Poor Firms Reject
Some Positive NP V Projects 98
Undervalued Equity for Cash Limited Firms:
Invest or Repurchase? 98
6.5 Sensitivity of Investment to Cash Flow 99
6.6 Excessive Optimism, Overconfidence,
and Cash 101
Identifying Excessively Optimistic, Overconfident
Executives 102
Assessing Value 104
6.7 Conflict Between Short Term and Long Term
Horizons 105
Summary 106
Additional Behavioral Readings 107
Key Terms 107
Explore the Web 107
Chapter Questions 107
Minicase: PSINet 109
Case Analysis Questions 109
Chapter 7
Dividend Policy 110
7.1 Traditional Approach to Payouts 110
7.2 Changes in Tax Policy 111
Changing Attitudes and Perceptions
about Risk 111
7.3 Dividends and Individual Investors:
Psychology 112
Self Control and Behavioral
Life Cycle Hypothesis 114
Dividends and Risk 115
Insights from Financial Columnists 116
7.4 Empirical Evidence 116
Contrast with Institutional Investors 117
7.5 How Managers Think about Dividends 118
Changing Payout Policies: Some History 118
Survey Evidence 119
7.6 Cateringto Inve stors' Tastes
for Dividends 122
Citizens Utilities Company 123
Catering and Price Effects 123
Summary 124
Additional Behavioral Readings 124
Key Terms 125
Explore the Web 125
Chapter Questions 125
Minicase: Nipsco 126
Case Analysis Questions 126
Chapter 8
Agency Conflicts and
Corporate Governance 127
8.1 Traditional Approach
to Agency Conflicts 127
8.2 Paying for Performance in Practice 128
Low Variability 128
Dismissal 129
Stock Options 129
Shareholder Rights 129
Behavioral Phenomena 130
8.3 Overconfidence among Directors
and Executives 130
Overconfident Directors 130
Insufficient Variability in
Pay for Performance 130
Better Than Average Effect in the Boardroom:
Overpayment 131
8.4 Stock Option Based Compensation 132
Overvaluing Options 132
Casino Effect 132
8.5 Auditing: Agency Conflicts
and Prospect Theory 133
Traditional Perspective 134
8.6 Sarbanes Oxley 135
8.7 Fraud and Stock Options:
Illustrative Example 136
Table of Contents xi
Signs of Disease? 139
Summary 141
Additional Behavioral Readings 141
Key Terms 141
Explore the Web 141
Chapter Questions 142
Additional Resources and Materials for Chapter 8
are available at www.mhhe.com/shefrin 143
Minicase: Tyco 143
Case Analysis Question 144
Ethics and Fairness in Finance A8 1
A8.1 Unethical Behavior Starts Early A8 1
Why Students Cheat A8 2
Ethics and Psychology A8 2
A8.2 Ethics, Fairness, and Financial Market
Regulation A8 3
Behavioral Aspects of Fairness A8 4
Fairness and Confidence A8 6
Chapter 9
Group Process 145
9.1 Traditional Approach
to Group Process 145
9.2 Process Loss 145
9.3 General Reasons for Group Errors 146
Groupthink 146
Poor Information Sharing 146
Inadequate Motivation 147
9.4 Groupthink and Poor Information Sharing:
Illustrative Examples 147
Enron 148
Imagine Yourself in the Boardroom 151
WorldCom 152
PSINet 153
9.5 Polarization and the Reluctance to Terminate
Losing Projects 154
9.6 Debiasing: Illustrative Example 155
Standards 155
Planning 156
Compensation 156
Information Sharing 157
Stock Ownership 157
Summary 158
Additional Behavioral Readings 158
xii Table of Contents
Key Terms 158
Explore the Web 158
Chapter Questions 159
Additional Resources and Materials for Chapter 9
are available at www.mhhe.com/shefrin 160
Minicase: Shugart 160
Case Analysis Questions 160
Examples of Poor Group Process A9 1
A9.1 The Packard Foundation A9 1
Governance and Groups A9 1
A9.2 The Hewlett Foundation A9 4
A9.3 General Findings
about Investment Committees A9 4
A9.4 The Endowment Effect A9 5
A9.5 Motivation and Incentives:
Residual Income A9 6
Illustrative Example: AT T A9 7
Questions A9 8
Chapter 10
Mergers and Acquisitions 161
10.1 Traditional Approach to M A 161
10.2 The Winner's Curse 162
10.3 Optimistic, Overconfident Executives 162
10.4 Theory 165
Symmetric Information, Rational Managers, and
Efficient Prices 165
Excessive Optimism and Overconfidence When
Prices Are Efficient 166
Inefficient Prices and Acquisition
Premium 167
Asymmetric Information 168
10.5 AOL Time Warner:
The Danger of Trusting Market Prices 169
Strategy and Synergy 169
Valuation 169
Asset Writedown 171
Hubris 172
10.6 Hewlett Packard and Compaq Computer:
Board Decisions 173
The Merger Alternative 174
Psychological Basis for the Decision to Acquire
Compaq 174
Valuation 175
H P 's Board Accepts Reality 176
Summary 177
Additional Behavioral Readings 177
Key Terms 178
Explore the Web 178
Chapter Questions 178
Additional Resources and Materials for Chapter 10
are available at www.mhhe.com/shefrin 179
Minicase: PSA Peugeot Citroen SA and
DaimlerChrysler AG 179
Case Analysis Question 180
Avoiding the Winner's Curse in M A A10 1
A10.1 Avoiding the Winner's Curse A10 1
Analytical Solution A10 1
A10.2 Two Monty Hall Problems A10 6
A10.3 Illustrative Example:
Cisco Systems A10 8
Cerent Corporation A10 9
A10.4 Illustrative Example: AT T A10 12
A10.5 Illustrative Example:
3COM and U.S. Robotics A10 13
Risks and Benefits A10 14
Outcome A10 14
Additional Questions A10 15
Chapter 11
Application of Real Option Techniques
to Capital Budgeting and Capital
Structure 181
The remaining contents of this chapter are
available at www.mhhe.com/shefrin 181
Chapter 11
Application of Real Option Techniques
to Capital Budgeting
and Capital Structure Al 1 1
11.1 Traditional Approach to Option
Theory All l
11.2 Do Managers Use Real Option
Techniques? All 2
Opaque Framing? All 2
11.3 Valuing Levered Equity All 5
Example A11 6
11.4 Conflicts of Interest All 9
Example: Small Scale Project Al 1 9
Asset Substitution All 10
Debt Overhang A11 11
Capital Structure Al 1 12
11.5 Overconfidence and Excessive
Optimism All 12
Overconfidence All 12
Excessive Optimism A11 13
Capital Structure A11 17
Table of Contents xiii
Summary A11 18
Additional Behavioral Readings Al 1 18
Key Terms Al 1 18
Explore the Web Al 1 19
Chapter Questions A11 19
Minicase: The Savings and Loan Crisis of the
1980s All 20
Case Analysis Question A11 21
Glossary 183
Endnotes 186
Index 195 |
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| any_adam_object_boolean | 1 |
| author | Shefrin, Hersh 1948- |
| author_GND | (DE-588)122258665 |
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| author_role | aut |
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| author_variant | h s hs |
| building | Verbundindex |
| bvnumber | BV022228206 |
| callnumber-first | H - Social Science |
| callnumber-label | HG4515 |
| callnumber-raw | HG4515.15 |
| callnumber-search | HG4515.15 |
| callnumber-sort | HG 44515.15 |
| callnumber-subject | HG - Finance |
| classification_rvk | QK 820 QP 700 QP 710 |
| ctrlnum | (OCoLC)61448276 (DE-599)BVBBV022228206 |
| dewey-full | 658.15 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 658 - General management |
| dewey-raw | 658.15 |
| dewey-search | 658.15 |
| dewey-sort | 3658.15 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| format | Book |
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| illustrated | Illustrated |
| index_date | 2024-07-02T16:31:44Z |
| indexdate | 2024-07-09T20:52:51Z |
| institution | BVB |
| isbn | 0072848650 |
| language | English |
| lccn | 2005053417 |
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| physical | 203 S. graph. Darst. 23 cm |
| publishDate | 2007 |
| publishDateSearch | 2007 |
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| publisher | McGraw-Hill/Irwin |
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| series2 | The McGraw-Hill/Irwin series in finance, insurance, and real estate |
| spelling | Shefrin, Hersh 1948- Verfasser (DE-588)122258665 aut Behavioral corporate finance decisions that create value Hersh Shefrin Boston [u.a.] McGraw-Hill/Irwin 2007 203 S. graph. Darst. 23 cm txt rdacontent n rdamedia nc rdacarrier The McGraw-Hill/Irwin series in finance, insurance, and real estate Includes bibliographical references and index Administração financeira larpcal Financieel management gtt Finanças das empresas larpcal Psychologische aspecten gtt Tomada de decisão (administração executiva) (aspectos psicológicos) larpcal Psychologie Corporations Finance Decision making Psychological aspects Verhaltenspsychologie (DE-588)4133738-4 gnd rswk-swf Finanzmanagement (DE-588)4139075-1 gnd rswk-swf Anlageverhalten (DE-588)4214003-1 gnd rswk-swf Anlageverhalten (DE-588)4214003-1 s Verhaltenspsychologie (DE-588)4133738-4 s DE-604 Finanzmanagement (DE-588)4139075-1 s b DE-604 http://www.loc.gov/catdir/enhancements/fy0625/2005053417-d.html Publisher description http://www.loc.gov/catdir/enhancements/fy0625/2005053417-t.html Table of contents only HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015439332&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Shefrin, Hersh 1948- Behavioral corporate finance decisions that create value Administração financeira larpcal Financieel management gtt Finanças das empresas larpcal Psychologische aspecten gtt Tomada de decisão (administração executiva) (aspectos psicológicos) larpcal Psychologie Corporations Finance Decision making Psychological aspects Verhaltenspsychologie (DE-588)4133738-4 gnd Finanzmanagement (DE-588)4139075-1 gnd Anlageverhalten (DE-588)4214003-1 gnd |
| subject_GND | (DE-588)4133738-4 (DE-588)4139075-1 (DE-588)4214003-1 |
| title | Behavioral corporate finance decisions that create value |
| title_auth | Behavioral corporate finance decisions that create value |
| title_exact_search | Behavioral corporate finance decisions that create value |
| title_exact_search_txtP | Behavioral corporate finance decisions that create value |
| title_full | Behavioral corporate finance decisions that create value Hersh Shefrin |
| title_fullStr | Behavioral corporate finance decisions that create value Hersh Shefrin |
| title_full_unstemmed | Behavioral corporate finance decisions that create value Hersh Shefrin |
| title_short | Behavioral corporate finance |
| title_sort | behavioral corporate finance decisions that create value |
| title_sub | decisions that create value |
| topic | Administração financeira larpcal Financieel management gtt Finanças das empresas larpcal Psychologische aspecten gtt Tomada de decisão (administração executiva) (aspectos psicológicos) larpcal Psychologie Corporations Finance Decision making Psychological aspects Verhaltenspsychologie (DE-588)4133738-4 gnd Finanzmanagement (DE-588)4139075-1 gnd Anlageverhalten (DE-588)4214003-1 gnd |
| topic_facet | Administração financeira Financieel management Finanças das empresas Psychologische aspecten Tomada de decisão (administração executiva) (aspectos psicológicos) Psychologie Corporations Finance Decision making Psychological aspects Verhaltenspsychologie Finanzmanagement Anlageverhalten |
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