We investigate the idea that firms' choices of M&A evaluation methods are influenced by two socio-political factors that arise in the behavioral theory of the firm-uncertainty and controversy. In doing so, we investigate boundary conditions between arguments that expect firms to use financial...

High dimensional covariance matrix estimation is considered in the context of empirical asset pricing. In order to see the effects of covariance matrix estimation on asset pricing, parameter estimation, model specification test, and misspecification problems are explored. Along with existing...

The capital asset pricing model has failed to explain the effect of systematic risk (referred to as beta) on actual stock market returns. Accordingly, this study analyzes daily returns by splitting it into overnight and daytime returns. The study analysis empirically confirms a positive...