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Berkshire Hathaway, among history's largest and most successful corporations, shuns middlemen; its chairman, the legendary investor Warren Buffett, excoriates financial intermediaries. The acquisitive conglomerate rarely borrows money, retains brokers, or hires consultants. Its governance is...
Persistent link: https://www.econbiz.de/10011758401
This paper studies knowledge sharing in alliances and alliance portfolios. We develop a theoretical framework that encompass as special cases the problems of knowledge misappropriation and asymmetric learning and show that, once the issue of encouraging effective collaboration is put...
Persistent link: https://www.econbiz.de/10014130072
An essential element of any realistic investment portfolio selection is the consideration of transaction costs. Our purpose, in this paper, is to determine the maximum return and the corresponding number of securities to buy giving such return, whenever practical constraints features related to...
Persistent link: https://www.econbiz.de/10010748209
We remove the technical assumption $\gamma>0$ imposed by Dai et. al. who consider the optimal investment and consumption decision of a CRRA investor facing proportional transaction costs and finite time horizon. As a by-product, we obtain an estimate on the optimal consumption
Persistent link: https://www.econbiz.de/10013128738
We propose a multi-stage stochastic trading cost model in optimal portfolio selection. This strategy captures uncertainty in implicit transaction costs incurred by an investor during initial trading and in subsequent rebalancing of the portfolio. We assume that implicit costs are stochastic as...
Persistent link: https://www.econbiz.de/10011784572
As in continuous time, the nontrading region (NTR) in a mean-variance model with fixed, proportional, and quadratic trading costs is a singleton only for pure quadratic costs. Utility loss from costs is approximately proportional at small cost levels, and approximately constant at large cost...
Persistent link: https://www.econbiz.de/10014352349
The post WWII MNE came into being in response to market imperfections including the national state. The Dunning OLI model deals with three major imperfections; ownership advantage (O), national governments (I), and replacing markets by organizations (I). All three imperfections affect...
Persistent link: https://www.econbiz.de/10013030131
This note studies the influence of a financial transaction tax and transaction costs on the optimal production and hedging strategies of a duopoly. Firms are exposed to demand uncertainty that leads to price risk and can hedge their risk exposure on a forward market. However, the forward...
Persistent link: https://www.econbiz.de/10010405210
We propose that investment strategies should be evaluated based on their net-of-trading-cost return for each level of risk, which we term the "implementable efficient frontier." While numerous studies use machine learning return forecasts to generate portfolios, their agnosticism toward trading...
Persistent link: https://www.econbiz.de/10013492674