Prior research hasfound thatpublicly-traded equity was a more viable option over private firms forrisk-averse investors. This finding was termedthe "private equitypremium puzzle," and two parts to this puzzle were determined: acorporate-finance dimension and a portfolio-choice dimension. Here,...

We consider a highly-qualified individual with respect to her choice between two distinct career paths. She can choose between a mid-level management position in a large company and an executive position within a smaller listed company with the possibility to directly affect the company’s...