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In current scenario, behavioral finance plays an important role in investment decision making. Investment decision has … become a complex decision with the availability of investment choices, accessibility of information and increased size of the … market. There are various options or choices available for the investors in the market while taking investment decisions …
Persistent link: https://www.econbiz.de/10012907898
I introduce a general equilibrium model with active investors and indexers. Indexing causes market segmentation, and the degree of segmentation is a function of the relative wealth of indexers in the economy. Shocks to this relative wealth induce correlated shocks to discount rates of index...
Persistent link: https://www.econbiz.de/10012905258
We examine the effect of low interest rates on bond portfolio and market allocations by all institutional investors and households across all bond types in Germany at the security-level for 2005-2016. We find that―in contrast to banks―non-banks tilt bond portfolios significantly towards...
Persistent link: https://www.econbiz.de/10012898096
We analyze the investment menus offered within 401(k) pension plans to the employees of the largest finance and non …-finance firms and of finance firms with an internal trustee. The changes of mutual funds on the investment menu offered by finance …
Persistent link: https://www.econbiz.de/10012859612
investment decisions. Emphasis is given to mistakes made by individuals, although evidence suggests all categories of market …
Persistent link: https://www.econbiz.de/10013022234
Using case studies of two investment companies, this paper highlights that organizations may have “investment tribes …-making, especially in market crises such as that of March 2020. The framework presented can be helpful for investment firms and … investment advisors, allowing them to become aware of potential biases. It also can be useful for asset owners that delegate …
Persistent link: https://www.econbiz.de/10013251312
American university and college endowments now hold close to one-third of their portfolios in private equity and hedge funds. We estimate the implied beliefs of endowments about alternative assets' returns relative to equities and bonds. At the end of 2012, the typical endowment believes that...
Persistent link: https://www.econbiz.de/10013062870
's incentives to tell the truth depend on the interaction between her investment horizon and the information acquisition decisions … of message-receiving investors. The model's key prediction is that short investment horizons can facilitate credible …
Persistent link: https://www.econbiz.de/10012250063
investment and growth. The increased risk from holding biased portfolios, which increases the demand for the risk-free asset …
Persistent link: https://www.econbiz.de/10012966469
(DRD) of future revenues, earnings, investment, as well as stock returns, follow a bimodal U-shaped distribution. By …
Persistent link: https://www.econbiz.de/10014238639