BehavioralFinanceand Investor Governance

ArXiv ID: ssrn-255778 “View on arXiv”

Authors: Unknown

Abstract

The efficient market hypothesis is a special case in finance. It explains only tiny fractions of observed phenomena. Perhaps its major contribution is a forma

Keywords: Efficient Market Hypothesis, Asset Pricing, Market Anomalies, Financial Economics, Equities

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 0.0/10
• Quadrant: Philosophers
• Why: The paper is a legal theory review discussing behavioral finance concepts and their implications for law and investor governance, with no mathematical formulas, statistical analysis, or backtesting data present in the provided excerpt.

  flowchart TD
    A["Research Goal<br/>Investigate Market Anomalies"] --> B["Data Input<br/>Historical Equity Returns"]
    B --> C["Methodology<br/>Test EMH vs. Behavioral Factors"]
    C --> D{"Analysis<br/>Model Comparison"}
    D -- EMH Framework --> E["EMH Outcome<br/>Limited Explanatory Power"]
    D -- Behavioral Framework --> F["Behavioral Outcome<br/>Captures Market Anomalies"]
    E --> G["Key Finding<br/>EMH is a Special Case<br/>Behavioral Finance Explains Reality"]
    F --> G