Masulis and Trueman (1988) investigated corporate investment and dividend decisions under differential personal taxation. They assumed a state-preference complete market, a ban on short selling and concluded that shareholders prefer nonzero dividend payment. In their model, the restrictions on...

This paper provides overviews of interesting topics of game theory, information economics, rational expectations, and efficient market hypothesis. Then, the paper shows how these topics are interconnected, with the rational expectations topic playing the pivotal role. Finally, by way of proving...

<title>Abstract</title> Any adequate analysis of globalization and state necessarily requires fundamental understanding of the worldviews underlying the views expressed with respect to the nature and role of globalization and state. This paper is based on the premise that any worldview can be associated with...

This paper examines the role of the no-arbitrage condition in financial markets with heterogeneous expectations. We consider a single-period, state-contingent claims model, withM risky securities andS states. There exist two types of heterogeneously informed investors, where the information...

Purpose – The purpose of this paper is to see how educational philosophies that underlie lecture and case methods of teaching are related to setting course goals, objectives, and contents. Design/methodology/approach – This paper is based on the premise that foundational philosophies,...

Purpose – Any adequate analysis of the nature of mathematics and its role in sciences necessarily requires fundamental understanding of the world views underlying the views expressed with respect to the nature and role of mathematics. Aims to discuss four general views with respect to...

Purpose – The purpose of this paper is to show that knowledge in general, and knowledge of markets in particular, is ultimately a product of the researcher's paradigmatic approach to a multifaceted phenomenon and therefore it is as much an ethical, moral, social, ideological, and political...

The explosion of the rational expectations equilibrium models in the finance literature has occurred when the perfect market assumption of homogeneous information is relaxed and prices play the role of aggregating and transmitting information in the financial market. This paper shows that the...