This paper tests for the presence of the favourite-longshot bias in a new setting. This bias #150 the tendency for bettors to underbet favourites and overbet longshots #150 has been found in most studies of pari-mutuel and bookmaking betting markets in the USA, the UK and Australia. However,...

A recent study of the fixed-odds betting market on baseball games, while finding that the betting market is generally efficient, also found evidence of an underbetting on underdog teams. This article examines the evidence for this new anomaly. It corrects Woodland and Woodland's estimates of the...

This paper examines the impact of changes in the Department of Homeland Security's threat levels on asset prices in the airline and insurance industries. If changes in threat levels contain new information, they would be expected to influence asset prices in one or both industries. The paper...

A recent study finds evidence of a new financial market anomaly linking daylight savings time changes with market returns - spring and fall daylight savings time weekends are typically followed by large negative returns - and that these returns are significantly lower than regular weekend...

This paper considers the game-related performance of the publicly traded teams in the English Premier League. It is found that the price behaviour of the publicly traded soccer team market to be very insensitive to game outcomes in terms of both returns and trading volume. It is believed that...

The movement between the opening and closing of betting lines on sports events has been shown to contain valuable information. The purpose of this study is to search for the source of this valuable information. Changes in college football betting lines are examined with respect to information...

The option features embedded in many bonds and fixed-income securities have made the binomial interest rate tree approach to bond valuation a valuable model for pricing debt securities. Fundamental to the application of the binomial model to bond valuation is the assumption about the underlying...

It is generally accepted that a firm's dividend policy can provide information about its future financial performance. Most studies link dividend policy with firm valuation; however, other signals involving dividend policy are also observed. The focus of this article is not to continue the...

In this paper, the relationship between the investment performances of equity securities and their price-earnings ratios is examined using an approach similar to the one employed by S. Basu in a 1977 paper. From the tests, the authors conclude that, from 1979 through 1984, there were some...