BEHAVIORAL CORPORATE FINANCE--A SURVEY（PDF 63）

Table of Contents
I. Introduction...........1
II. The irrational investors approach.................4
A. Theoretical framework...........................6
B. Empirical challenges............................10
C. Investment policy ................................13
C.1. Real investment ..........................14
C.2. Mergers and acquisitions.............16
C.3. Diversification and focus ............18
D. Financial policy ...................................19
D.1. Equity issues...............................19
D.2. Repurchases................................23
D.3. Debt issues..................................24
D.4. Cross-border issues .....................26
D.5. Capital structure..........................27
E. Other corporate decisions ....................28
E.1. Dividends ...................................29
E.2. Firm names .................................31
E.3. Earnings management .................32
E.4. Executive compensation..............33
III. The irrational managers approach..............34
A. Theoretical framework.........................36
B. Empirical challenges............................39
C. Investment policy ................................40
C.1. Real investment ..........................40
C.2. Mergers and acquisitions.............42
D. Financial policy ...................................43
D.1. Capital structure..........................43
D.2. Financial contracting...................44
E. Other behavioral patterns.....................44
E.1. Bounded rationality.....................45
E.2. Reference-point preferences........46
IV. Conclusion..........48
References ..............51
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