Models in financial economics derived from no-arbitrage assumptions have found great favor among theoreticians and practitioners. We develop a model of option prices where arbitrage is short lived. The arbitrage process is Ornstein-Uhlenbeck with zero mean and rapid adjustment of deviations. We...

Ten states and the District of Columbia prohibit the operation of payday loan stores, and thirty-one other states have imposed regulatory restraints on the controversial industry, ranging, for example, from caps on fees and loan amounts to the number of rollovers and renewals a borrower may...

We consider returns from rebalanced and buy and hold portfolios consisting of the same stocks. Theoretical properties are derived using Jensen's inequality and the Hölder's Defect Formula. Simulations are used to confirm theory and to investigate ambiguous cases where theory is silent....

Many public pension funds face serious funding shortfalls. In fact, more than half of the states currently have public pension funds with funded ratios that are less than 80 percent, a level many prefer. In this paper we examine factors important in explaining the funded ratios of state and...

We examine how changes in dividend policy in 2008 as the financial crisis was unfolding influenced firm risk-adjusted returns in the following years. Our sample consists of NYSE- and NASDAQ-traded firms that paid dividends in 2007. We divide these firms into four groups based on their dividend...

We investigate geographic distribution of payday lenders and banks that operate throughout the United States. We examine the relation between the number of payday lender stores and various demographic and economic characteristics

We examine how changes in dividend policy in 2008 as the financial crisis was unfolding influenced firm risk-adjusted returns in the following years. Our sample consists of NYSE- and NASDAQ-traded firms that paid dividends in 2007. We divide these firms into four groups based on their dividend...

The short squeeze in GameStop attracted worldwide attention and resulted in congressional hearings. The increase in price from $21 to $483 over a short period of time was not the result of obvious fundamental earnings prospects. Excess demand by investors on a social media site accompanied by...