We consider a financial market model driven by an Rn-valued Gaussian process with stationary increments which is different from Brownian motion. This driving noise process consists of n independent components, and each component has memory described by two parameters. For this market model, we explicitly solve optimal investment problems. These include (i) Merton’s portfolio optimization proble...

Many scholars and managers endorse the idea that the primary purpose of the !rm is to make money for its owners. This shareholder wealth maximization objective is justi!ed on the grounds that it maximizes social welfare. In this article, the !rst of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our curr...

This research focuses on who controls shareholder’s wealth maximization and how does this affect firm’s performance in publicly quoted non-financial companies in Nigeria. The shareholder fund was the dependent while explanatory variables were firm size (proxied by log of turnover), retained earning (representing management control) and dividend payment (representing measure of shareholders cont...

People are sometimes risk-averse in gains but risk-loving in losses. Such behavior and other anomalies underlying prospect theory arise from a model of local status maximization in which consumers compare their wealth with other consumers of similar wealth. This social explanation shares key features with the psychological explanation offered by Kahneman and Tversky. JEL Classification: D81, D11