We examine whether the decision to participate in the stock market and other related portfolio decisions are influenced by income hedging motives. Economic theory predicts that the market participation propensity should increase as the correlation between income growth and stock market returns...

In contrast to the standard economics theory, an analysis of the Survey of Consumer Finance shows that wealthy investors have a higher return on their stocks than their poorer counterparts. The paper presents a general financial and economic theory of risk and search behavior to address the...

This paper examines the impact of birth order on financial decision making. In lieu of explanations such as dissimilar parental style across children with different birth orders (due to learning and experience) or the existence of sibling externalities commonly offered in the literature to...

The results of this paper demonstrate an inverse relationship between women’s status in terms of financial equality with men, proxied by gender wage gap, and women’s entrepreneurship participation at the US state level. The gender wage gap affects women’s opportunity cost of the...

This paper analyses the prospect of cryptocurrency regulation, especially, on crypto prices, volatility and volume. We employ the Google Trend technique and introduce the Crypto Regulation Sentiment Index (CRSX) that reflects Crypto regulation fear at the US and Global levels. We utilize over...

We present a theoretical and empirical methodology that reflects the Cryptocurrency version of VIX, which we name it as CVIX (Crypto VIX), and captures the future 30 days forward Crypto risk (fear). Our framework is built on idiosyncratic and systematic Crypto risk, and is not based on the...

This paper demonstrates that when companies’ social values are more aligned with households’, then households do exhibit greater propensity to participate in the stock market; tolerate greater financial risk; invest more and trade less, which lowers the overall volatility. Indeed, we create...

This study analyzes the financial opportunities that the new Artificial Intelligence (AI) innovation presents. We first present what is AI in finance and then our analysis is broken down into two themes. First, we display the current and projected AI revenue by sector, technology type, and...

Since the work by Stigler on the economics of information in the early 1960s, economists have paid closer attention to the role of search for information. However, search methods are not considered in the theory of portfolio choice. We present a model of investor search behavior in order to...

Since Markowitz (1959), we deal with the uncomfortable stylized fact called the diversification puzzle- most investors hold only few individual stocks in their portfolios, though the mean-variance portfolio selection model requires many stocks. This paper demonstrates that the ex post...