Hersh Shefrin
Encyclopedia
Hersh Shefrin is an economist
best known for his pioneering work in behavioral finance
.
Shefrin received his B.S. from Manitoba University in 1970. At the University of Waterloo
in 1971 he received his M.S. in mathematics
. He then obtained a Ph.D. in economics
from the London School of Economics
in 1974, after which he became assistant professor at the University of Rochester
. In 1979 he was appointed professor at the Santa Clara University
, first in the department of economics and then in 1990 to the department of finance
.
Shefrin holds an honorary doctorate from the University of Oulu
, Finland
. He has long standing collaborations with Richard Thaler
and Meir Statman on behavioral finance, being one of the first economists to incorporated ideas from psychologists like Amos Tversky
and Daniel Kahneman
into working theories.
Shefrin's research articles have been published in many economics and finance journals, in particular: the Journal of Finance
, the Journal of Financial Economics
, the Review of Financial Studies
, the Journal of Financial and Quantitative Analysis
, Financial Management
, the Financial Analysts Journal, and the Journal of Portfolio Management
. Shefrin has written a number of influential books on behavioral finance and its applications to corporate finance
and corporate culture.
Shefrin and his wife, Arna, were married in 1970.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
best known for his pioneering work in behavioral finance
Behavioral finance
Behavioral economics and its related area of study, behavioral finance, use social, cognitive and emotional factors in understanding the economic decisions of individuals and institutions performing economic functions, including consumers, borrowers and investors, and their effects on market...
.
Shefrin received his B.S. from Manitoba University in 1970. At the University of Waterloo
University of Waterloo
The University of Waterloo is a comprehensive public university in the city of Waterloo, Ontario, Canada. The school was founded in 1957 by Drs. Gerry Hagey and Ira G. Needles, and has since grown to an institution of more than 30,000 students, faculty, and staff...
in 1971 he received his M.S. in mathematics
Mathematics
Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity...
. He then obtained a Ph.D. in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
from the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
in 1974, after which he became assistant professor at the University of Rochester
University of Rochester
The University of Rochester is a private, nonsectarian, research university in Rochester, New York, United States. The university grants undergraduate and graduate degrees, including doctoral and professional degrees. The university has six schools and various interdisciplinary programs.The...
. In 1979 he was appointed professor at the Santa Clara University
Santa Clara University
Santa Clara University is a private, not-for-profit, Jesuit-affiliated university located in Santa Clara, California, United States. Chartered by the state of California and accredited by the Western Association of Schools and Colleges, it operates in collaboration with the Society of Jesus , whose...
, first in the department of economics and then in 1990 to the department of finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
.
Shefrin holds an honorary doctorate from the University of Oulu
University of Oulu
The University of Oulu is one of the largest universities in Finland, located in the city of Oulu. It was founded on July 8, 1958. The university has around 16,000 students and 3,000 staff...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
. He has long standing collaborations with Richard Thaler
Richard Thaler
Richard H. Thaler is an American economist and the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business...
and Meir Statman on behavioral finance, being one of the first economists to incorporated ideas from psychologists like Amos Tversky
Amos Tversky
Amos Nathan Tversky, was a cognitive and mathematical psychologist, a pioneer of cognitive science, a longtime collaborator of Daniel Kahneman, and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of measurement...
and Daniel Kahneman
Daniel Kahneman
Daniel Kahneman is an Israeli-American psychologist and Nobel laureate. He is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology....
into working theories.
Shefrin's research articles have been published in many economics and finance journals, in particular: the Journal of Finance
Journal of Finance
The Journal of Finance is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the American Finance Association. It was established in 1946. Its current editors are Campbell R. Harvey and John R. Graham...
, the Journal of Financial Economics
Journal of Financial Economics
The Journal of Financial Economics or JFE, is a peer-reviewed academic journal covering the theory of financial economics. Together with the Journal of Finance and the Review of Financial Studies, it is considered to be among the top three finance journal. The editor is Bill Schwert...
, the Review of Financial Studies
Review of Financial Studies
The Review of Financial Studies is an academic journal published by Oxford University Press on behalf of the Society for Financial Studies. It was established following discussions at the 1986 Western Finance Association meetings, and the first issue was published in 1988...
, the Journal of Financial and Quantitative Analysis
Journal of Financial and Quantitative Analysis
The Journal of Financial and Quantitative Analysis is an academic journal published by the School of Business Administration at the University of Washington in cooperation with the University of Utah David Eccles School of Business and New York University's Leonard N. Stern School of Business. It...
, Financial Management
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
, the Financial Analysts Journal, and the Journal of Portfolio Management
Journal of Portfolio Management
The Journal of Portfolio Management is a quarterly academic journal covering asset allocation, performance measurement, market trends, risk management, and portfolio optimization. The journal was established in 1974 by Peter L. Bernstein. The current editor-in-chief is Frank J...
. Shefrin has written a number of influential books on behavioral finance and its applications to corporate finance
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
and corporate culture.
Shefrin and his wife, Arna, were married in 1970.
Books
- Behavioral Corporate Finance, 2006. McGraw-Hill/Irwin
- A Behavioral Approach to Asset Pricing Theory, 2005. Elsevier; 2nd edition in 2008.
- Ending the Management Illusion, 2008. McGraw-Hill
- Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing, Boston, MA: Harvard Business School Press, 1999. Revised version published 2002, New York: Oxford University Press
Selected articles
- “An Economic Theory of Self-Control”, with R. ThalerRichard ThalerRichard H. Thaler is an American economist and the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business...
, Journal of Political EconomyJournal of Political EconomyThe Journal of Political Economy is an academic journal run by economists at the University of Chicago and published every two months by the University of Chicago Press. The journal publishes articles in both theoretical economics and empirical economics...
, 1981. - “The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence”, with M. Statman, Journal of FinanceJournal of FinanceThe Journal of Finance is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the American Finance Association. It was established in 1946. Its current editors are Campbell R. Harvey and John R. Graham...
, Vol. XL, No. 3, 1985. - “Behavioral Capital Asset Pricing Theory”, with M. Statman, Journal of Financial and Quantitative AnalysisJournal of Financial and Quantitative AnalysisThe Journal of Financial and Quantitative Analysis is an academic journal published by the School of Business Administration at the University of Washington in cooperation with the University of Utah David Eccles School of Business and New York University's Leonard N. Stern School of Business. It...
, September, 1994. - “The Contributions of Daniel Kahneman and Amos Tversky”, with Meir Statman. Journal of Behavioral FinanceJournal of Behavioral FinanceThe Journal of Behavioral Finance is a peer-reviewed journal that publishes research related to the field of behavioral finance. It formerly published as The Journal of Psychology and Financial Markets....
, 2003.