Information systems have revolutionized the nature of markets. Traditionally, markets inherently comprised the strategic interaction of human traders only. Nowadays, however, automated trading agents are responsible for at least 60% of the US trading volume on financial stock markets. In this respect, financial markets of the 21st century are different to markets of previous centuries. Fuelled ...

According to the nature of their activities, banks are exposed to various types of risks. Hence, risk management is at the heart of financial institutions management. In this study, we intend to summarize the information content of bank financial statements on diverse risks faced by banks and then determine how stock markets react to bank's risk management behavior. The methodology used in this...

An integrated monetary growth model of Keynes–Metzler–Goodwin type with a portfolio approach to its three asset markets (money, bonds, equities) is introduced to study the interaction between the real and the financial part of market economies. Beneath expectations and governmental behavior, profits and their implied dividend payments influence the behavior of asset markets, which determine int...

financial literacy of investors reduces uncertainty on future decisions and increases predictability of investment policies in financial markets. thus, the lack of clear information on financial markets is a determining factor in the arrival of domestic and foreign capitals and their quick exit in case of crisis. the lack of transparency and basic knowledge on decisions and failure to provide r...

Gordon Clark is surely right when he declares that ‘people are often unable to conceptualize immediate circumstances against market forces that operate beyond the boundaries of current experience and at levels or scales that appear abstract rather than material to the interests of those involved’. In this commentary, I claim that the description of the interactions between behavioral predisposi...