The current study investigates the impact of substantial economic fluctuations on household portfolios and analyzes how the fluctuations influence households' propensities to meet the capital accumulation ratio threshold of 25%. The 1992 to 2007 Survey of Consumer Finances datasets were analyzed...

Institutional investments di ffer in several key aspects, including fi nancial sophistication and frequency of monitoring from retail mutual funds. This paper analyzes how this "e ffective governance" impedes tournament behavior. For mutual funds, it has been shown that relative "loser" managers...

We test the relation between ambiguity aversion and five household portfolio choice puzzles: non-participation in equities, low allocations to equity, home-bias, own-company stock ownership, and portfolio under-diversification. In a representative U.S. household survey, we measure ambiguity...

We test the relation between ambiguity aversion and five household portfolio choice puzzles: non-participation in equities, low allocations to equity, home-bias, own-company stock ownership, and portfolio under-diversification. In a representative U.S. household survey, we measure ambiguity...

This paper estimates establishment-level employment effects of investment grants in one of the German Federal States receiving the most support. We analyze general treatment effects, as well as the influence of heterogeneity in the characteristics and economic environment of the establishment on...

We consider a real options model with ambiguity to investigate how cash holdings and ambiguity aversion affect a firm’s dynamic investments. First, we prove a unique positive ambiguity coefficient exists when ambiguity exceeds it such that entrepreneurs believe the project is “too valueless...