Behavioural Finance

While conventional academic finance emphasizes the theory of efficient market hypothesis, the emerging field of behavioural finance investigates the psychological and sociological issues that impact the decision-making process of individuals, groups, and organizations. The authors blend the two theories of finance viz., Efficient Market Hypothesis and Behavioural Finance. Undertaking an exhaustive study of a sample of investors residing in the twin cities of Hyderabad and Secunderabad. Subjecting the data gathered to rigorous analysis the authors aver that the Efficient Market Hypothesis, if supplemented with the concepts of Behavioural Finance, would provide a complete picture of investors’ investment behaviour.Students of Finance at B-schools, and also professionals at financial institutions will reap considerable benefit by perusing the book. By replicating the study over a larger geographical area and over a longer time period, researchers would be able to revalidate or contradict the conclusions drawn by the authors. This calls for more curious people. The authors deserve rich encomiums for the study undertaken -Prof.K.Narendranath,Osmania University.