The requirement of existing utility with positive first derivative only makes it possible to derive a restricted two-fund separation theorem for portfolio selection problems with HARA utility replacing the original separation theorem of Cass and Stiglitz (1970). We use our findings for a brief...

We empirically investigate possible reasons for successful syndications in private equity transactions. To this end, we analyze the answers of 115 private equity firms regarding relevant resources of potential syndication partners. Based on structural equation modeling we find that only three...

We examine theoretically and experimentally a certain class of new financial instruments which are designed as lotteries on the outcome of prominent sports events like the Soccer World Cup 2006. From a theoretical point of view, sports betting products may be superior to a fixed rate investment...

Special reimbursements for creditors in the case of the premature redemption of mortgaged loans are called prepayment penalties. They have been a controversially discussed topic in Germany for the last decade. This is mainly due to the fact that the European Union judges German prepayment...

The most relevant practical impediment to an application of the Markowitz portfolio selection approach is the problem of estimating return moments, in particular return expectations. We analyze the consequences of using return estimates implied by analysts' dividend forecasts under the explicit...

In an asymmetric information context with bounded rationality, investors' loss aversion, mental accounting and buy-and-hold behaviour may create opportunities for good-type firms to signal their project quality by choosing lower issuance prices at rights offerings than bad-type firms do. Bad...

This paper analyzes the positions that Venture Capital firms hold in a syndication network and determines the effect that network positions have on generating deal flow quantity and quality. Using data on syndicated investments in the German venture capital market and data on the deal flow of...

In this paper the relation between aggregate mutual fund flows and stock market returns is analysed with respect to three issues. First, we study the relation between fund flows and long-term realized returns (past, current and future). Second, we find out that fund flows are not driven by...