Over the past decades, there is an increased trend in the international financial integration as countries are removing and relaxing controls on cross-border investment. Capital can flow easily to the destination that offers higher returns as the results of decreasing obstacles to international...

Credit rating agencies are frequently criticized for producing sovereign ratings that do not accurately reflect the economic and political fundamentals of rated countries. This article discusses how the home country of rating agencies could affect rating decisions as a result of political...

"This book introduces the readers to the rapidly growing literature and latest results on financial, fundamental and seasonal anomalies, stock selection modeling and portfolio management. Fifty years ago, finance professors taught the Efficient Markets Hypothesis which states that the average...

Purpose – This paper aims to understand whether the initiative of financial education through the use of simulations effectively teaches participants to operate in the markets in a profitable manner, while avoiding some cognitive biases. Design/methodology/approach – The use of simulations...

Purpose – The purpose of this paper is to systematically review the literature published in past 33 years on behavioural biases in investment decision-making. The paper highlights the major gaps in the existing studies on behavioural biases. It also aims to raise specific questions for future...

Purpose – Recent research on local bias provides evidence that investors' portfolios include a non‐negligible allocation to stocks in firms that are geographically proximate to the investors. The reasons postulated for local bias include familiarity with firms, “word‐of‐mouth”...

Wenn Staaten und Banken gegenseitig zu abhängig voneinander sind, leidet die Stabilität des gesamten Finanzsystems. Das war eine Lehre aus der Finanz- und Staatsschuldenkrise im Euroraum. Mehr als zehn Jahre nach deren Beginn scheint es jedoch nicht gelungen, die ungünstige Verquickung von...