This paper studies the “confidential holdings” of institutional investors, especially hedge funds, where the quarter-end equity holdings are disclosed with a significant delay through amendments to the Form 13F. Our evidence supports hiding private information as the dominant motive for...

The paper offers adaptation of cointegration analysis for statistical arbitrage. Cointegration is a structural relationship model that relies on dynamic correction towards the equilibrium. The model is ultimately linear: when relationships are decoupled, the forecast of individual price follows...

Cultural literacy is analogous to financial literacy and is almost as important. Cultural literacy matters to advisors as they design fitting financial plans because clients carry within them the cultures of their countries of origin long after they have settled in their countries of residence....

This paper investigates the impact of using different risk-adjusted measures of performance on the evaluation of UK investment trusts. Significant negative skewness is probably the most important empirical property of the time series of returns under analysis. Performance results based on the...

The investor overconfidence theory predicts a direct relationship between market-wide turnover and lagged market return. Whereas previous research has examined this prediction in the equity market, we focus on trading in the options market. Controlling for stock market cross-sectional...

I analyze how managerial overconfidence affects management's propensity to issue seasoned equity offerings (SEOs). I focus separately on Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs), and further differentiate between Shelf offerings and Non-Shelf offerings. The main...

Bounded Rationality refers to the idea that our rationality is limited by the information we have, the cognitive limitations of our minds and the finite amount of time we have to make a decision. However, investment professionals seem to disregard the bounded rationality of our minds and tend to...

How does social capital affect trust? Evidence from a Chinese peer-to-peer lending platform shows regional social capital affects the trustee’s trustworthiness and the trustor’s trust propensity. Ceteris paribus, borrowers from higher social capital regions receive larger bid from individual...

How does social capital affect trust? Evidence from a Chinese peer-to-peer lending platform shows regional social capital affects the trustee’s trustworthiness and the trustor’s trust propensity. Ceteris paribus, borrowers from higher social capital regions receive larger bid from individual...

Many pundits have alluded to cryptocurrencies as a bubble or Ponzi scheme. Yet, noted economists have long emphasized the need for competing currencies, and the usage of Bitcoin is high in countries where the fiat currency has experienced significant devaluation. With no central authority...