In the analysis of balanced panel data sets used in Business Research, the commonly used methods are either OLS with adjusted standard errors such as cluster standard errors or Fama-Macbeth. In this paper we show through extensive simulations that Maximum Likelihood Generalized Least Squares...

Using a unique and large dataset, the present paper contributes new insights to the growing literature on behavioral biases in portfolio decisions of individual investors. We find that the sign of the outcomes of recent past stock trades, where a positive sign indicates a profitable trade and a...

Using a unique and large dataset of trading records, we find that individual investors view zero returns as a natural benchmark for their trading performance. They increase both buy and sell trading volume if their past investment outcomes are positive, and decrease them if the outcomes are...

We study the impact of financial innovations on real investmentdecisions within the framework of an incomplete market economy comprisedof fi rms, investors, and an intermediary. The fi rms face uniqueinvestment opportunities that arise in their business operations and canbe undertaken at given...