This research investigates the existence of segmentation in the market for fixedincome securities. Evidence is found of higher yield spreads being required for non-distressed bonds making larger contributions to the risk of pure debt portfolios over the 2003–2011 period. Abnormal returns...

This research utilizes the most recent research in psychology to analyze the innate causes of financial cycles within the context of applied financial theory. Such cycles are shown to be consistent with both human biology and efficient markets, but the brain states induced by biological...

This paper demonstrates analytically how short sellers can put non-transitory downward pressure on the stock market prices and intrinsic values of companies that need to raise external capital because of insufficient internal liquidity. The model helps explain anomalous empirical findings in the...