In this study, the sole rational implementation of risk sharing is shown to require simultaneity of the presence, in markets of each of safe, high risk, and low risk assets. In context of the said implementation, market efficiency - which yet may deteriorate or improve - is optimized by searches...

It is no secret that the rational expectations framework has endured what many consider to be a well deserved bashing. From problems, such as, ad hoc specifications of functional forms for utility functions, to adoption of utility functions as units of modeling, to absence of equilibriums that...

This study provides formal theoretical evidence that value maximization is a rational behavioral, as opposed to rational expectations valuation rubric. Rational behavioral character of the value maximization rubric is evident in the axiomatic finding that, absent arrival of any unanticipated...

Let diversification structure refer to the choice between a diversified or focused organizational structure. Suppose performance of diversified firms within an industry Θ is a sufficient statistic for aggregate firm-level performance of diversified firms across industries Θ and Ω. Denote...

Using data from 1980 through 2005, and implementations of the Intertemporal Capital Asset Pricing Model (ICAPM), this study consistently generates positive intertemporal risk-return relations within venture capital markets. During the first five years of business, venture capitalists (VCs) are...

The formal theoretical model in this study enables segmentation of countries with respect to three factors, namely, the extent to which income inequality is adopted as a policy variable; the extent to which there is focus on generation of either of `incremental', or `disruptive' innovations; and...

The formal theoretical model in this study provides general equilibrium evidence that a country's ranking with respect to either of income inequality (αr), or GDP Per Capita (Gr) each are better statistics for a country's `placement' in the cross-section of countries than either of actual...

This study provides formal theoretical evidence that, in of itself, and subsequent to the first day of trading, applications of the Gordon Growth Model to pricing of publicly traded equity incorporate informational `noise' and/or `shading of information' that, theoretically, are unbounded....