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Compensation schemes, liquidity provision, and asset prices: An experimental analysis
Baghestanian, Sascha; Gortner, Paul; Massenot, Baptiste - 2015
In an experimental setting in which investors can entrust their money to traders, we investigate how compensation schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a potentially higher return, they can entrust their money...
Persistent link: https://www.econbiz.de/10010527647
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Anchoring in experimental asset markets
Baghestanian, Sascha; Walker, Todd B. - 2015
We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show that setting a visual anchor at the fundamental value (FV) in the first period only is sufficient to eliminate or to significantly reduce bubbles in laboratory asset markets. If...
Persistent link: https://www.econbiz.de/10012064267
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Compensation schemes, liquidity provision, and asset prices : an experimental analysis
Baghestanian, Sascha; Gortner, Paul; Massenot, Baptiste - 2015
In an experimental setting in which investors can entrust their money to traders, we investigate how compensation schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a potentially higher return, they can entrust their money...
Persistent link: https://www.econbiz.de/10010530580
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Financing asset growth
Brennan, Michael J.; Kraft, Holger - 2013
optimistic analyst earnings forecasts, and when the earnings yield is high relative to bond yields so that from an accounting …
Persistent link: https://www.econbiz.de/10010327802
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Leaning against the wind: Debt financing in the face of adversity
Brennan, Michael J.; Kraft, Holger - 2016
We offer evidence of a new stylized feature of corporate financing decisions: the tendency of managers to rely more on debt financing when earnings prospects are poor. We term this 'leaning against the wind' and consider three possible explanations: market timing, precautionary financing, and...
Persistent link: https://www.econbiz.de/10012064286
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Ownership, Wealth, and Risk Taking: Evidence on Private Equity Fund Managers
Bienz, Carsten; Thorburn, Karin; Walz, Uwe - 2019
We examine the incentive effects of private equity (PE) professionals' ownership in the funds they manage. In a simple model, we show that managers select less risky firms and use more debt financing the higher their ownership. We test these predictions for a sample of PE funds in Norway, where...
Persistent link: https://www.econbiz.de/10012302573
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Collateral eligibility of corporate debt in the Eurosystem
Pelizzon, Loriana; Riedel, Max; Simon, Zorka; … - 2020
, whereas the liquidity of older bonds is una↵ected/improves. Corporate bond lending relaxes the constraint of limited … collateral supply, thereby making the market more cohesive and complete. Following eligibility, bond-issuing firms reduce bank … debt and expand corporate bond issuance, thus increasing overall debt size and extending maturity. …
Persistent link: https://www.econbiz.de/10012210227
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Conform to the norm. Peer information and sustainable investments
Grossmann, Max; Hackethal, Andreas; Laudi, Marten; … - 2023
We conduct a field experiment with clients of a German universal bank to explore the impact of peer information on sustainable retail investments. Our results show that information about peers' inclination towards sustainable investing raises the amount allocated to stock funds labeled...
Persistent link: https://www.econbiz.de/10014446310
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Women form social networks more selectively and less opportunistically than men
Friebel, Guido; Lalanne, Marie; Richter, Bernard; … - 2017
We test two hypotheses, based on sexual selection theory, about gender differences in costly social interactions. Differential selectivity states that women invest less than men in interactions with new individuals. Differential opportunism states that women's investment in social interactions...
Persistent link: https://www.econbiz.de/10011630071
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Artificial intelligence, ethics, and intergenerational responsibility
Klockmann, Victor; von Schenk, Alicia; Villeval, … - 2022
In more and more situations, artificially intelligent algorithms have to model humans' (social) preferences on whose behalf they increasingly make decisions. They can learn these preferences through the repeated observation of human behavior in social encounters. In such a context, do...
Persistent link: https://www.econbiz.de/10012802575