Convertible bond issues increase considerably since 1990. The papershows that these issues are more than just the combination of a bond and an option.The pricing depends on the share price, the shares volatility, the interest rate,and the interest volatility , the credit spread, and the...

This paper shows that Economic Value Added (EVA) can be used to optimize theperformance of european share investements. Investing in the top third relative EVAperformers, leads to a significant outperformance. This is true for market and sektorinvestments. The best results were found for growth...

Investitionsentscheidungen sind stets unter Unsicherheit zu treffen.1 Der Entscheidungsträgerkann dabei nicht mit hinreichender Genauigkeit den Zusammenhang zwischen den Einflussgrößenund der Zielfunktion seines Entscheidungsproblems formulieren. Hinzu kommt, dassdie Werte der...

This paper investigates the returns and flows of German money marketfunds before and during the liquidity crisis of 2007/2008. The mainfindings of this paper are: In liquid times money market funds enhancedtheir returns by investing in less liquid papers. By doing so they outperformedother funds...

We examine in an experiment the causes, consequences and possible cures ofmyopic loss aversion (MLA) for investment behaviour under risk. We find thatboth, investment horizons and feedback frequency contribute almost equally tothe effects of MLA. Longer investment horizons and less frequent...

Parimutuel betting markets are simplified financial markets, andcan thus provide a clearer view of pricing issues which are more complicatedelsewhere. Though empirical studies generally conclude thatthe parimutuel betting markets are surprisingly efficient, it is alsofound that for horses with...

We experimentally examine how group identity affects trust behaviorin an investment game. In one treatment, group identity isinduced purely by minimal groups. In other treatments, group membersare additionally related by outcome interdependence establishedin a prior public goods game. Moving...

This experimental study investigates whether individuals preferbounded rationality over rational choice theory when facing simpleinvestment tasks. First, participants state some personal parametersthat serve as an input to render a theoretical approach, namelysatisficing or optimality,...

The paper explores the applicability of the satisficing approach. Inparticular, we investigate whether basic principles of aspiration formationand satisficing behavior are transferable between similar situations.Individuals are sequentially confronted with two risky investmenttasks, a simple and...

This paper investigates factors influencing individual portfolio allocations withparticular focus on the role of illusion of control. By forming their portfolio of tworisky lotteries and one risk-less alternative, subjects are requested to reach a targetinvestment profit, whereby equal...