PhD Defense G. Neszveda
Essays on Behavioral Finance
Despite the fact that almost everyone faces risk in their lives and it is a crucial ingredient in economic models including asset pricing models, it is still an open debate how decision-makers or even investors evaluate risk. Experimental and empirical evidence shows that the standard expected utility theory falls short of explaining many economic and asset pricing phenomena. Behavioral finance provides alternative conceptual frameworks to explain these phenomena. This dissertation consists of 3 chapters investigating the impacts of some of the conceptual frameworks in behavioral finance. Chapter 1 investigates the potential impact of the expected utility theory with an aspiration level on stock returns. Chapter 2 investigates the impact of the law of small numbers on stock returns. Chapter 3 investigates the relation between time discounting and risk taking in an experiment.
Gábor Neszveda obtained his Master degree in Quantitative Economic Analysis at Corvinus University of Budapest, Hungary, in 2010. He became a Research Master student at Tilburg University, in the Netherlands, in 2013 and obtained a Master degree in 2014. In the same year, he joined the Department of Finance at Tilburg University as a Ph.D. candidate.
- Location: Cobbenhagen building, Aula (access via Koopmans building)
- Supervisor: Prof. B. Melenberg
- Co-supervisor: Dr. R.G.P. Frehen