Partly motivated by a deeper understanding of the role human greed has played in the current financial crisis, this paper quantifies the notion of greed, and explores its connection with leverage and potential losses, in the context of a continuoustime behavioral portfolio choice model under (cumulative) prospect theory. We We are grateful for comments from seminar and conference participants a...

We study the relation between access to finance and productivity at the county level. We exploit an exogenous shift in demand for a product to expose how producers adapt their productivity in the presence of varying levels of access to finance. We use a differences-in-differences-indifferences testing approach and find that production increases the most over the sample period in counties with r...

Using firm-level data from the manufacturing sector of Chile for the period 1995-2002, we examine whether access to finance increase the probability of exporting. To do that, we exploit information of firms ́ access to banking debt and changes in the real exchange rate (RER) to identify the causal effect of finance on exporting. This is an interesting setting given that the Chilean economy exper...

it is very important for managers, investors and financial policy-makers to detect and analyze factors affecting financial markets to obtain optimal decision and reduce risks. the importance of market analysis and attempt to improve its behavior understanding, has led analysts to use the experiences of other professionals in the fields such as social sciences and mathematics to examine the inte...

Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increased importance of organizational capital in production, (2) the increase in managerial income inequality and pay-performance sensitivity, and (3) the secular decrease in labor market reallocation. Our paper develops a simple explanation for these changes: a shift in the composition of producti...

The study examined the sources of informal finance in aiding climate change adaptation in South eastern Nigeria. Random sampling was adopted in the selection of 6 out of the 9 communities in the study area. From each of these selected communities, 10 crop farmers were randomly selected giving a total number of 60 respondents. Descriptive statistics such as percentages and frequency, as well as ...

I provide a synthesis of the behavioral finance literature over the past two decades. I review the literature in three parts, namely, (i) empirical and theoretical analyses of patterns in the cross-section of average stock returns, (ii) studies on trading activity, and (iii) research in corporate finance. Behavioral finance is an exciting new field because it presents a number of normative impl...

Welcome to the course page for Business Finance for Life Scientists This content is designed provide an overview of financial statements, and basic finance principles used in financial planning and decision making. The goal of this workshop is to help prepare scientists who want to start their own labs, and inform scientists who want to go into industry. This page includes the lecture videos, c...

The Impact on Option Pricing of Specification Error in the Underlying Stock Price Returns Author(s): Robert C. Merton Source: The Journal of Finance, Vol. 31, No. 2, Papers and Proceedings of the Thirty-Fourth Annual Meeting of the American Finance Association Dallas, Texas December 28-30, 1975 (May, 1976), pp. 333-350 Published by: Blackwell Publishing for the American Finance Association Stab...