The impact of financial leverage on firm investment is one of the most important issues in corporate finance. Debt overhang reduces the incentives of shareholder–management coalition in controlling the firm to invest in positive net-present-value investment opportunities. On the other hand, firms without debt in their financial structure face with a new problem known as over-investment. T...

The aim of this paper is to explore the relationship between wages, human capital and investment in financial assets with risky returns at the individual level. To explore this relationship from an international perspective, we analyse individual level data from the British Household Panel Survey, the German Socio-Economic Panel and the U.S. Panel Study of Income Dynamics. Our findings suggest ...

To escape from poverty requires assets, be they human, physical, social, or financial. Individual Development Accounts (IDAs) are designed to help the poor build assets. Withdrawals from IDAs are matched if used for home purchase, post-secondary education, or self-employment. Participants also receive financial education and support from IDA s t a ff. This paper discusses evidence from the A m ...

the goal of this research was prioritize effective financial factors on price stock in tehran stock exchange with using topsis method. based on, it was reviewed literature and interviews and specially questionnaire obtain, effective financial factors to analysis with emphasize on topsis technique. the results shown in the entire ratio price to income, historical event share, eps and return on a...

This paper develops, using the revealed preference approach, a model of choice with an initial endowment and in the presence of alternatives that are grouped into categories. Our model generalizes the classical individual choice model which is rationalized by utility maximization, and reduces to that model in the absence of an initial endowment. Given an exogenous endowment, our decision maker ...

A number of analysts believe that these financial developments have altered significantly the relationship between Ml growth and the gr’owth of GNP. rendering the narrow monetaiy aggregate less usefi.rl as an intermediate target for monetary policy.’ Others have objected on broader grounds, arguing that these innovations illuminate the problem of simply adding up various financial assets curren...

We consider a stochastic financial exchange economy with a finite date-event tree representing time and uncertainty and a nominal financial structure with possibly long-term assets. We exhibit a sufficient condition under which the payoff matrix and the full payoff matrix have the same rank. This generalizes previous results of Angeloni-Cornet and MagillQuinzii involving only short-term assets....

In this paper, we apply particle swarm optimisation to the construction of optimal risky portfolios for financial investments. Constructing an optimal risky portfolio is a high-dimensional constrained optimisation problem where financial investors look for an optimal combination of their investments among different financial assets with the aim of achieving a maximum reward-to-variability ratio...

This empirical study analyzes the information and predictive content of the Baltic Dry Index (BDI) with respect to a range of financial assets and the macroeconomy. By using panel methodological approaches and daily data spanning the period 1985–2012, the empirical analysis documents the joint predictability capacity of the BDI for both financial assets and industrial production. The results re...

In this paper, I analyze a simple financial contracting problem between a riskneutral financial intermediary and a risk-averse household, where the household receives an endowment that grows over time, and is unable to commit to the contract. I argue that in this environment, the presence of uncertainty in the household’s endowment may improve the household’s welfare by relaxing its commitment ...