Werner De Bondt Explained

Werner De Bondt
Birth Place:	Belgium
Institution:	DePaul University 2002– University of Wisconsin - Madison 1984-2002
Field:	Behavioral finance, behavioral economics, investment management, investor psychology, entrepreneurial beliefs and motivation, financial planning and investor advice
Alma Mater:	Cornell University Ph.D. 1985
Influences:	David Dreman, Jacques Ellul, Benjamin Graham, Karel (Galileo) Imbrechts, Daniel Kahneman, Wim Moesen, Paul Slovic, Richard Thaler, Amos Tversky, Lambert Vanthienen.

Werner F.M. De Bondt is one of the founders in the field of behavioral finance. He is also the founding director of Richard H. Driehaus Center for Behavioral Finance at DePaul University in Chicago. Previously, he was the Frank Graner Professor of Investment Management at the University of Wisconsin-Madison, and the Thomas F. Gleed Chair of Business Administration at Albers School of Business and Economics at the Seattle University.

Life and career

He is a native of Belgium and an alumnus of Hagelstein (St.-Katelijne-Waver). He received a degree as Handelsingenieur from Universitaire Faculteiten Sint-Ignatius Antwerpen (Antwerp, Belgium). He subsequently earned an M.B.A. from the Catholic University of Louvain (Louvain, Belgium), a master's degree in Public Administration from Cornell University (Ithaca, New York) and a Ph.D. in Business Administration from Cornell University.

Alongside Daniel Kahneman, Amos Tversky, Hersh Shefrin, Meir Statman, Robert Shiller and Richard Thaler (with whom he co-wrote the seminal paper “Does the Stock Market Overreact? ” in 1985)^{[1] [2]} De Bondt helped define the field of behavioral (or psychological) finance long before it became popular. He has investigated key research questions such as the intuitive tendency of naïve investors to extrapolate past trends in stock prices and corporate earnings, market overreaction, bubbles, the excessive self-confidence of traders, and their herding instinct. His work has been published in numerous academic journals (including the Journal of Finance, the Financial Analysts Journal, the European Economic Review, and the American Economic Review) and De Bondt has been cited in many European and U.S. news publications, including the Chicago Tribune,^{[3] [4] [5]} Finanz und Wirtschaft,^{[6] [7]} the Frankfurter Allgemeine Zeitung,^{[8] [9] [10]} the Neue Zürcher Zeitung,^{[11] [12]} the Milwaukee Journal Sentinel,^{[13] [14]} De Standaard,^[15] Trends,^{[16] [17]} BNQ Perspectives on banking,^[18] Elliott Wave International,^[19] LESSAC,^[20] De Tijd,^{[21] [22] [23]} the Wall Street Journal and others.^{[24] [25] [26] [27] [28] [29] [30] [31] [32]}

Professor De Bondt has been a guest on various TV programs including PBS ^[33] and Kanaal Z with Veronique Goossens.^[34] He speaks at many conferences organized by universities and government agencies.^[35] He has served on the editorial boards of several academic journals, including the Journal of Behavioral Finance, the Financial Analysts Journal, the British Accounting Review, the Journal of Empirical Finance, and Behavioral Science & Policy.

Published Books/Monographs

• Financial Accounting and Investment Management, edited book in two volumes, Edward Elgar Publishing, 2009
• The Psychology of World Equity Markets, edited book in two volumes, Edward Elgar Publishing, 2005
• Earnings Forecasts and Share Price Reversals, AIMR, Charlottesville, Virginia, 1992

Selected published articles

• "Time-varying Risk Behavior and Prior Investment Outcomes: Evidence from Italy," Judgment and Decision-Making, September 2018 (with Andrea Lippi, Laura Barbieri and Mariacristina Piva), 2018 (September).
• "Mind Over Money: The Behavioral Revolution in Finance, " Revue Bancaire et Financière, 2018
• "Looking Into the Future: How Investors Forecast the Stock Market, " (with J. Michael Collins and Karl-Erik Warneryd) in A. Lewis (ed.), Cambridge Handbook of Psychology and Economic Be-havior, Cambridge University Press, 2017
• "Crisis of Authority, " in A.G. Malliaris, L. Shaw and H. Shefrin (eds.), The Global Financial Crisis and its Aftermath, Oxford University Press, 2016
• "After the Crisis: How to Restore Trust in Business and Finance," Spanish Journal of Finance and Accounting (Revista Española de Financiación y Contabilidad), 2013
• "Asset Bubbles: Insights from Behavioral Finance, " in Douglas D. Evanoff, George G. Kaufman and A.G. Malliaris (eds.), New Perspectives on Asset Price Bubbles: Theory, Evidence, and Policy, Oxford University Press, 2012
• "The Crisis of 2008 and Financial Reform," Qualitative Research in Financial Markets, 2010
• "Style Investing Within the S&P-500 Index," (with H.-L. Chen), Journal of Empirical Finance, 2004
• "Portrait Psychologique de l’Investisseur Individuel en Europe," (with P. Zurstrassen and A. Arzeni), Revue d'Economie Financiėre, 2002
• "A Portrait of the Individual Investor," European Economic Review, 1998
• "R&D Budgets and Corporate Earnings Targets" (with M. Bange), Journal of Corporate Finance, 1998
• "Betting on Trends: Intuitive Forecasts of Financial Risk and Return," International Journal of Forecasting, 1993
• "Do Security Analysts Overreact?" (with R. Thaler), The American Economic Review, 1990
• "Does the Stock Market Overreact?" (with R. Thaler), The Journal of Finance, 1985

External links

• Official web page at DePaul University
• Official web page of Werner De Bondt

Notes and References

1. Werner De Bondt, and Richard Thaler, “Does the stock market overreact?,” The Journal of Finance 40, no. 3 (1985): 793-805.According to Google Scholar, this paper has been cited 10642 times. https://scholar.google.com/scholar?q=Werner+De+Bondt%22+%22does+the+stock+market+overreact&btnG=&hl=en&as_sdt=0%2C33
2. Werner De Bondt, and Richard Thaler, “Do security analysts overreact?,” The American Economic Review (1990): 52-57. According to Google Scholar, this paper has been cited 1211 times. Google Scholar
3. Bill Barnhart, “Fresh, clean bubble theories,” Chicago Tribune, June 30, 2002. http://articles.chicagotribune.com/2002-06-30/business/0206300085_1_bubble-tech-stocks-stock-market
4. Andrew Leckey, “Pop goes the bubble,” Chicago Tribune, April 17, 2005. http://www.chicagotribune.com/sns-yourmoney-0417bubble,0,6475353.story
5. John Lux, “Pop goes a market? There is only one sure way to avoid investment bubbles: Show your heels,” Chicago Tribune, April 17, 2005.
6. Web site: 2005-02-19 . "Als hätte Gott sie speziell gesegnet" . 2024-03-15 . Finanz und Wirtschaft . de.
7. Philippe Béguelin and Peter Kuster, “Regulierung ist zur Koodination wichtig,” Finanz und Wirtschaft, December 13, 2008.
8. Hanno Beck, “Spekulative Blasen wird es immer geben,” Frankfurter Allgemeine Zeitung, April 12, 2008.
9. News: 2006-10-30 . Anlagestrategie: "Der Markt braucht Zeit" . de . FAZ.NET . 2023-08-17 . 0174-4909.
10. News: 2008-12-04 . Im Gespräch: Werner de Bondt: "Spekulative Blasen wird es immer geben" . de . FAZ.NET . 2023-08-17 . 0174-4909.
11. Gerhard Schwarz, “Menschen und Geld --- das liebe ich,” Neue Zürcher Zeitung, July 2, 2005.
12. Volker Hergert, “Dem Trend auf der Spur,” Neue Zürcher Zeitung, June 25, 2008.
13. Kathleen Gallagher, “Buy-and-hold is viable strategy, some say,” Milwaukee Journal Sentinel, March 20, 2004.
14. John Schmid, “October has history of spooking investors. Crashes, swings of 2008 mimicked fall of 1929, 1987,” Milwaukee Journal Sentinel, November 1, 2008.
15. Web site: 2007-06-20 . De belegger als gevoelsmens . 2023-08-17 . De Standaard . nl-BE.
16. News: 2008-12-04 . Im Gespräch: Werner de Bondt: "Spekulative Blasen wird es immer geben" . de . FAZ.NET . 2023-08-17 . 0174-4909.
17. Ilse De Witte, “We zitten in de grootste zeepbel ooit,” Trends, March 18, 2015. http://trends.knack.be/economie/finance/werner-de-bondt-we-zitten-in-de-grootste-zeepbel-ooit/article-normal-542415.html
18. BNQ Perspectives on banking, December 17, 2013. http://bnq.lecho.be/epargner_et_investir/la-psyche-de-linvestisseur/
19. Susan C. Walker, “De Bondt on investor sentiment,” Elliott Wave International, March 18, 2014 http://www2.elliottwave.com/freeupdates/archives/2014/03/18/QA-DeBondt-on-Investor-Sentiment.aspx#axzz48MDLrJOh
20. “Manifestations,” LESSAC, May 15, 2008.http://lessac.escdijon.eu/index.php?page=manifestations
21. Wouter Van Driessche, “Casino's zijn veiliger dan beurzen,” De Tijd, October 4, 2008.
22. Kris Van Hamme, “We beleven een crisis in autoriteit,” De Tijd, July 24, 2016.http://www.tijd.be/markten_live/nieuws_algemeen/We_beleven_een_crisis_in_autoriteit.9791070-3452.art?ckc=1
23. Kris Van Hamme, “Economische modellen zijn toch grappig?,” De Tijd, December 9, 2017. https://www.tijd.be/markten-live/nieuws-algemeen/Thaler-en-De-Bondt-Economische-modellen-zijn-toch-grappig/9961518
24. Susan Trammel, “Are analysts just human, after all?,” CFA Magazine, September–October 2003.
25. Erik Durnez, “Beleg filisofisch, planmatig en emotievrij,” Uw Vermogen, January 2005.
26. Sven Vande Broek, “Stuur uw beleggingsgedrag,” Cash, June 15, 2006.
27. Emmanuel Garessus, “La finance comportementale révèle combien les bourses sont prévisibles,” AGEFI, November 13, 2006. https://www.mataf.net/fr/forum/topic/2069-la-finance-comportementale-revele-combien-les-bourses-sont-previsibles/
28. Jo Napolitano, “Shopping for stocks: Perspectives on P/Es,” Better Investing, February 2007.
29. Web site: Fachpublikation «Schweizer Bank» eingestellt . 2023-08-17 . Handelszeitung . de-CH.
30. Wouter Van Driessche, “Casino's zijn veiliger dan beurzen,” De Tijd, October 4, 2008.
31. Oliver Schaerrer, “Les bulles spéculatives s’articulent en quatre temps,” Le Magazine de la Banque Cantonale de Genève, Autumn 2008. https://www.bcge.ch/pdf/dialogue-automne-2008.pdf
32. Piet Depuydt, “Echte leider is morele leider, ook in een bedrijf,” NRC Handelsblad, January 2, 2009.
33. NBR interview "Your Mind and Your Money" PBS2, January 16, 2014. https://www.youtube.com/watch?v=Aj1MyBQR7ck
34. “Ik zie heel weinig nieuwe ideeën om de financiële wereld veiliger te maken, ” June 6, 2017. http://kanaalz.knack.be/talk/ik-zie-heel-weinig-nieuwe-ideeen-om-de-financiele-wereld-veiliger-te-maken/video-normal-871391.html
35. CVM (Securities Regulatory Agency of Brazil),"The psychology of regulation," Rio de Janeiro, Brazil, December 2016.https://www.youtube.com/watch?v=K9LMgHCRZtM