It has been recognised that a major contributory factor to the current financial crisis has been the excessive risk-taking behaviour of the banking sector. The UK Banking Commission Report proposes, as a remedy, that bankers who take excessive risks that lead their banks into bail-out situations...

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is well documented in standard corporate finance, it is still young under behavioral corporate finance. In this paper, we test the investment cash flow sensitivity among panel data of...

This paper examines dividend changes in an emerging market: Thailand. We begin by considering the possible effects of the Thai corporate environment on dividend policy. We develop a theoretical model that considers the relationship between the strength of investor power and dividends in an...

This paper investigates, theoretically and empirically, the impact of corporate hedging activities on firm value/performance. In a perfect market, with self-less management, aiming to maximise shareholder wealth, it may be expected that hedging would improve firm performance and add value. Our...

We analyse bargaining between a venture capitalist and a manager over their financial contract. We consider three main questions. What is the effect of bargaining, and when will it provide the first-best solution? What is the effect of bidding between competitive venture capitalists to supply...

We present a theory of entrepreneurial behavior that explores the relationship between overconfidence and successful firm outcomes, such as acquisition or IPO. In our model, increasing overconfidence produces two conflicting effects on the probability of a successful outcome: it not only induces...

We consider the combined impact of agency problems and social fairness norms on venture capital/entrepreneur contracting and performance. Particularly, we develop a behavioural game-theoretic model in which a venture capitalist and an entrepreneur negotiate over their respective equity shares,...

With our planet's environment facing increasing threat of irreparable damage, academics, practitioners, and policy-makers are becoming more focused on the incentives of individuals, corporations, and governments to act in the interests of the environment. Since the environment is a public good,...

We consider the impact of fairness and moral hazard in a principal-agent bargaining model, where the agent can affect the size of the surplus by his actions. Our main results are as follows; a) the offer predicted by the basic fairness model (excluding moral hazard) results in inefficient...