Applied Investment Theory

How Markets and Investors Behave, and Why

Authors: Coleman, Les

  • Overhauls theories of finance to explain real-world functioning
  • Contextualizes financial theories in light of recent economic crises, explaining why, where and how the theory fails to explain what happens in reality
  • Offers a practical guide to real-world application of Applied Investment Theory by academics, researchers and investors
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eBook $49.99
price for USA (gross)
  • ISBN 978-3-319-43976-1
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $64.99
price for USA
  • ISBN 978-3-319-43975-4
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

Institutions now dominate trading in equities around the world. Mutual funds are the most prominent, and doubly important as custodians of retirement savings. Despite this, there is no comprehensive description of fund manager behaviour, much less a matching theory. This is troubling because one of the most economically significant puzzles in finance is why experienced, well-resourced fund managers cannot outperform the market.

Applied Investment Theory: How Equity Markets Behave, and Why brings together academic research, empirical evidence and real market experience to provide new insights into equity markets and their behaviours. The book draws upon the author’s rich industry experience and academic research, plus over 40 interviews with fund managers on three continents and across different markets. The result is an innovative model that explains the puzzle of poor performance by mutual funds in terms of structural features of markets, the managed investment industry, and the conduct of fund managers.

This book provides a fully integrated depiction of what markets and investors do, and why – insights that will resonate with the needs of investors, wealth managers and industry regulators. It is fully documented, but free of jargon and arcane math, and provides a grounded theory that is relevant to anyone who wants to pierce the opacity of mutual fund operations. Applied Investment Theory sets out a new paradigm in investment that is at the forefront of what should be an industrial-scale development of new finance theory following two decades of almost back-to-back financial crises.

About the authors

Les Coleman is a Senior Lecturer in Finance at the University of Melbourne, Australia. His main research interest is financial decision making by firms and investment funds, and his finance publications include three research monographs, four book chapters and nearly 30 journal articles. Les trained originally as an engineer, and spent almost 30 years in senior management positions with Anglo American and ExxonMobil Corporations in Australia and overseas.

Table of contents (11 chapters)

  • Introduction

    Coleman, Les

    Pages 1-11

  • Current Paradigm: Neoclassical Investment Theory

    Coleman, Les

    Pages 15-28

  • Behavioural Biases in Investor Decisions

    Coleman, Les

    Pages 29-52

  • Uncertainty in Investor Wealth

    Coleman, Les

    Pages 53-72

  • Building Investment Theory Using the Structure-Conduct-Performance (SCP) Paradigm

    Coleman, Les

    Pages 75-81

Buy this book

eBook $49.99
price for USA (gross)
  • ISBN 978-3-319-43976-1
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $64.99
price for USA
  • ISBN 978-3-319-43975-4
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Applied Investment Theory
Book Subtitle
How Markets and Investors Behave, and Why
Authors
Copyright
2016
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s)
eBook ISBN
978-3-319-43976-1
DOI
10.1007/978-3-319-43976-1
Hardcover ISBN
978-3-319-43975-4
Edition Number
1
Number of Pages
XXV, 246
Number of Illustrations and Tables
7 b/w illustrations, 13 illustrations in colour
Topics