This paper analyzes the relations among firm-level stock option portfolio incentives, investment, and firm value based on a sample of Finnish firms during the time period 1987 – 2000. Utilizing exact and complete information regarding stock option portfolio characteristics, we find some evidence that firm investment is increasing in the incentives to increase stock price (delta) and risk (vega)...

In recent decades, financial securities have become a dominant form of private property, accounting for much the growth wealth around world. But what kind property are securities? What sources income they provide, and social relations that underlie its flow? This article addresses these questions through Marxist category fictitious capital. Focusing on corporate stocks bonds, shows expressed in...

We provide direct evidence regarding the risk and reputational capital implications of commercial bank securities underwriting activities. Using a large sample of commercial bank underwritten initial public offerings (IPOs) and comparisons with investment bank underwritten issues, we find that (1) commercial banks are no more likely to misprice IPOs than are traditional investment banks, and (2...

Does Forced Solidarity Hamper Investment in Small and Micro Enterprises? Sharing is a norm in many societies. We present a theoretical model on the trade-off between sharing and investment which we test on data from tailors in Burkina Faso. The empirical results support the idea that there are two behavioural patterns: entrepreneurs following an ‘insurance regime’ comply with sharing norms, are...

Recent literature on optimal investment has stressed the difference between the impact of risk and the impact of ambiguity also called Knightian uncertainty on investors’ decisions. In this paper, we show that a decision maker’s attitude towards ambiguity is similarly crucial for investment decisions. We capture the investor’s individual ambiguity attitude by applying α-MEU preferences to a sta...

The authors construct three financial conditions indexes (FCIs) for Canada based on three approaches: an IS-curve-based model, generalized impulse-response functions, and factor analysis. Each approach is intended to address one or more criticisms of the monetary conditions index (MCI) and existing FCIs. To evaluate their three FCIs, the authors consider five performance criteria: the consisten...

This paper analyzes the links between the firms investment technology and financial asset prices within a general equilibrium production economy. The model assumes that real investment is irreversible and subject to convex adjustment costs. It shows how these basic features of real investment naturally generate rich dynamics of stock returns. Firm investment activity and firm characteristics, p...

This study provides new insight into the market’s allocation of dividend-related and capital gains-based returns on common stock around earnings announcement surprises. To the extent that investors’ cash flow forecasts are revised as earnings surprises occur, Americus Trust prime and score returns reflect changes in respective future dividends and capital gains. About 70% of the value gain from...

The most important objectives in portfolio management are to have the highest average return at a certain level of risk and eliminate unsystematic through diversification. Measuring performance their portfolios has an place investment decisions for investors who want maximum risk. In order measure performance, there three basic methods; Sharpe Ratio, Treynor Ratio Jensen’s Alpha indices. this s...