Empirical evidence suggests that investors share price-relevant information via their social networks. I analyze why and under what circumstances skilled investors (ldquo;arbitrageursrdquo;) will rationally share private information via this word-of-mouth mechanism. My...

Using the TASS database, we aim to study 26 emerging markets hedge funds' behaviour during the Asian currency crisis of 1997. In the first part of our work, we develop a multifactor model in order to estimate emerging markets hedge funds' exposures during the February 1995 - December 1999...

Stress tests have become an important component of the supervisory toolkit. However, the extent of disclosure of stress-test results remains controversial. We argue that while stress tests uncover unique information to outsiders — because banks operate in second--best environments with...

Insurance Industry is going through a very important stage of its transformation - the transition from the classical system of management into a risk-based management. These changes were launched in Europe by international organizations which deal with the development of the necessary...

Hedge funds are a complex investment instrument with a great variety of players, innovative operational features, non homogeneous target markets. Recent developments of their regulations in Europe and in the U.S. shows: the objectives of financial regulation and its related problems, the current...

Our methodology of quot;complete identification,quot; using simple algebraic geometry, throws new light on the continued commitment of Galton's Error in finance and the resulting misinformation of investors. Mutual funds conventionally advertise their relative systematic market risk, or...

The Securities and Exchange Commission's disclosure philosophy has largely focused on a single model: the publicly held corporation. From its inception, the SEC's disclosure framework for mutual funds has been a relative backwater and based largely on the disclosure framework for publicly held...

This article analyzes investor beliefs as to stocks, the inadvertent role government plays in shaping those beliefs and thereby contributes to a rise in stock prices, and the need for government quot;neutralityquot; among investor belief systems. It suggests that, contrary to conventional...

Science progresses by improving its measurement apparatus. This holds true in finance too. The new methodology of quot;complete identification,quot; using simple algebraic geometry, throws new light on Galton's Error in finance and economics and the resulting mis-information of investors. Mutual...

This theoretical paper seeks to correct a common error about the effect of personal taxation on the expected pre-tax return earned on equity portfolios held by mutual funds in tax-sheltered retirement plans such as IRA and Keogh (401-k). Contrary to the prevailing view, the analysis reveals that...