Behavioural economics, a relatively new branch of study, formally began in the 1980s and has garnered increasing attention from economists and neuroscientists since. Behavioural finance, a subfield of behavioural economics, attempts to explain financial market–related behaviour. This note introduces behavioural finance by providing an overview of fundamental behavioural economic theories and empirical findings, including more recent findings that .....more

Teaching note for product 9B17A027.

An investment analyst was tasked with determining the impact of political controversy on firm performance in the aftermath of the highly charged 2016 U.S. presidential election. After this election, U.S. firms such as New Balance, GrubHub, and PepsiCo faced boycotts from aggrieved activists. The analyst needed to better understand the downsides—and potential benefits—of firms’ involvement in political controversy. To do so, she needed to graph the .....more