SSRN-From Behavioural to Emotional Corporate Finance: A New Research Direction by Richard Fairchild

Interesting: breaking behavioral finance down into finer groupings.

SSRN-From Behavioural to Emotional Corporate Finance: A New Research Direction by Richard Fairchild:

"Behavioural finance and behavioural corporate finance analyses the effects of psychological biases, heuristics, and emotions on investors’ and managers’ decision-making and performance. Taffler and Tuckett (2005) have introduced a major paradigm shift by introducing a new field of research, namely Emotional Finance. This ground-breaking approach employs Freud’s theory of phantastic objects to analyse the effect of unconscious, infantile, emotions on investors’ decisions. In this paper, we extend their work by proposing a new development, namely, emotional corporate finance. We argue that, just as investors may view investments as phantastic objects, managers may view their projects similarly."