I review the literature on financial speculation driven by belief disagreements from a macroeconomics perspective. To highlight unifying themes, I develop a stylized macroeconomic model that embeds several mechanisms. With short-selling constraints, speculation can generate overvaluation and...

Greed has been shown to be an important economic motive. Both the popular press as well as scientific papers have mentioned questionable practices by greedy bankers and investors as one of the root causes of the 2008 global financial crisis. In spite of these suggestions, there is as of yet no...

Purpose - The study examines the impact of behavioral biases, such as herd behavior, overconfidence and reactions to ESG News, on Socially Responsible Investing (SRI) decisions in the Indian context. Additionally, it explores gender differences in SRI decisions, thereby deepening the...

The disposition effect is implicitly assumed to be constant over time. However, drivers of the disposition effect (preferences and beliefs) are rather countercyclical. We use individual investor trading data covering several boom and bust periods (2001-2015). We show that the disposition effect...

We propose a novel measure of risk perceptions: the price of volatile stocks (PVSt), defined as the book-to-market ratio of low-volatility stocks minus the book-to-market ratio of high-volatility stocks. PVSt is high when perceived risk directly measured from surveys and option prices is low....

Using daily advertising data, we analyze the short-term effects of advertising on investor attention and on financial market outcomes. Based on various investor attention proxies, we show that advertising positively affects attention. However, it has only little impact on turnover and liquidity....

The field of academic finance has grown and evolved in the 47 years since the Journalof Financial Economics (JFE) began publishing papers. This paper examines detailed dataon the 3,003 papers written by 3,358 different authors published in the JFE over the period1974–2020. Advances in...

We explore interactions of firms in a pre-trading(fixed network of lending/borrowing) period whereby firms set fixed lending rates given quadratic loan management costs. Equilibrium rates charged each creditor firm is derived from linear reaction function isomorphic to private provision of...

A complex system consists of a lot of interactive individuals, agents, or units. It occurs widely but is hard to model in both natural and social sciences. Its behavior is neither regular nor random. However, it has some kinds of structures which capture our interesting to study. We can apply...

The essence of literacy is currently understood on a broader level. Emphasis is placed on functional literacy, which also includes financial literacy. Its level significantly affects a person's standard of living. In the contribution, we are devoted to the investigation of this issue and the...