Purpose–The purpose of this paper is to examine the implications of asymmetric information for price evolution and investor behavior under a rational expectations framework. Design/methodology/approach–The author presents a simple asymmetric information-based asset-pricing model to show that...

Purpose–The purpose of this paper is to empirically analyze the role of differentiated margin system in leading investors' investing behavior and then optimize investor structure in futures markets. Design/methodology/approach–Using economic experimental research method, this paper designs...

This study is a theoretical overview on the origin and formation mechanisms of the financial crisis. We first presented a typology of these crises on the basis of specific symptoms and we proposed statistical indicators of instabilities correspondent to each type of crisis. We also evaluated the...

Acest studiu investigheaza rolul capitalului strain, al creditarii bancare si al îndatorarii sectorului privat în formarea dezechilibrelor premergatoare crizei financiare din tarile europene. Mai întâi, am aratat ca atât stocul de credit total, cât si cel privat sunt puternic corelate cu...

Prezentul studiu reprezinta o sinteza teoretica privind originea si mecanismele de formare a crizelor financiare. Am realizat mai întâi o tipologie a acestor crize în functie de simptomele specifice si am propus indicatori statistici ai vulnerabilitatilor reprezentative pentru fiecare tip de...

Financial basics and intuition stresses the importance of investment horizon for risk management and asset allocation. However, the beta parameter of the Capital Asset Pricing Model (CAPM) is invariant to the holding period. Such contradiction is due to the assumption of long-term independence...

Decline in confidence in free market mechanisms in the past decade has provoked an increase in interest in regulatory issues. This paper seeks to answer one question: Are exchange listing rules an effective screening mechanism? Using a sample of IPO firms listing on major U.S. exchanges in...

This paper investigates the market efficiency of the Malaysian crude palm oil prices using data for the sample period spanning from 1998:01 – 2010:12. The univariate unit root test confirms that all series are non-stationary in their levels. The Johansen multivariate test provides empirical...

This paper analyzes the equity-portfolio recommendations made by investment newsletters. The dataset spans 17 years, is free of survivor and back-fill biases, and includes the complete recommendations for 153 different newsletters. Overall, there is no significant evidence of superior...

We study the impact of social networks on agents' ability to gather superior information about firms. Exploiting novel data on the educational backgrounds of sell side equity analysts and senior officers of firms, we test the hypothesis that analysts' school ties to senior officers impart...