This paper investigates factors affecting stockholder dividend preferences. The optional dividends paid by Hong Kong firms provide a unique natural experiment for testing dividend preference in a tax free setting. When offered the opportunity to convert cash dividends to stock, investors exhibit...

This paper analyzes whether the market portfolio is efficiently related to benchmark portfolios formed on size, value, momentum and reversal with various utility theories by using stochastic dominance criteria. The results support the prospect theory including assumption of loss aversion at...

This article investigates the portfolio selection problem of an investor with three-moment preferences taking positions in commodity futures. To model the asset returns, we propose a conditional asymmetric t copula with skewed and fat-tailed marginal distributions, such that we can capture the...

In this paper, I study the role of knowledge in policy preferences. I suggest an objective measure of economic knowledge that is uncorrelated with political attachments to test its importance for preferences for economic policies. In the original surveys conducted in 2018 and 2019 in Argentina I...

This paper finds necessary and sufficient conditions of Nth-order stochastic dominance (SD) for risk aversion and develops linear tests for Nth-order SD. We introduce a linear FDSD (fourth-order SD and decreasing absolute risk aversion SD) test for standard risk aversion. A positive research...

According to the behavioral finance theory, agents act coherently with the Kahneman and Tversky prospect paradigms and may violate those dictated by the rational expected utility. From the point of view of real financial markets' applications, a key question concerns how to eliciting the...

Part II in this study continues Part I in the previous issue in this journal concerning the balancing of investment risk and return. This article provides empirical evidence on the relationship between "personal characteristics" of individual common-stock investors and their risk/return...