"I provide a synthesis of the Behavioural finance literature over the past
two decades. I review the literature in three parts, namely, (i) empirical
and theoretical analyses of patterns in the cross-section of average stock
returns, (ii) studies on trading activity, and (iii) research in corporate
finance. Behavioural finance is an exciting new field because it presents
a number of normative implications for both individual investors and CEOs.
The papers reviewed here allow us to learn more about these specific
implications." Copyright 2007 The Author Journal compilation (c) Blackwell Publishing Ltd.