How malleable are preferences? This paper provides experimental evidence on the extent to which insurance sellers can influence buyers and whether mandatory information disclosure offsets these effects. The experiment involves 214 subjects seeking or recently obtaining unsecured loans and 25...

Previous empirical studies of international CAPM models have not found much supporting evidence. In this paper we suggest reasons why this might have happened and perform new tests using improved models and data. A range of monthly CAPM models are estimated for 1973-1987 for aggregate equities...

The stock market capitalization (SMC) of a country, defined as the aggregated market value equity of companies in the respective equity market, is commonly used to measure the widening and deepening of stock market activity. SMC also influences economic growth predictions and public consensus...

This paper examines the impact of illusory control beliefs on the performance of traders in financial instruments. The authors argue that the task and environment faced by traders are conducive to the development of illusions of control and that individual propensity to illusion of control will...

How did companies at the Trade Center respond to the destruction brought about by the attack on September 11th? In this paper we look through the concrete and glass facade of the twin towers into the socio-technical networks of people, machines, and ideas that constituted the trading rooms. We...

En el presente trabajo se analiza el uso de las TIC (Tecnologías de la Información y la Comunicación) en las responsabilidades de la gestión de la tesorería, tomando como referencia para su estudio las empresas de la CAPV (Comunidad Autónoma del País Vasco). Los resultados indican que las...

As the UK’s retail financial services sector discovers the value of retaining customers it is also becoming aware that product elimination has the potential to damage existing purchasing relationships. Unlike physical goods, where elimination is often undertaken with scant regard for the...

This paper bridges the literature on real options in strategy with that on financial options. It uses insights from both literatures to show how the use of options contracts can encourage innovators to enter markets by mitigating the effects of uncertainty and permitting the capture of greater...

This paper bridges the literature on real options in strategy with that on financial options. It uses insights from both literatures to show how the use of options contracts can encourage innovators to enter markets by mitigating the effects of uncertainty and permitting the capture of greater...

Investors in ventures that threaten to disrupt the markets of incumbents can use the options markets to add value to their investments by purchasing put options on the stock of the disrupted rivals on the basis of their asymmetric knowledge. By making a profit on these derivative trades in the...