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Research in behavioral corporate finance takes two distinct approaches. The first emphasizes that investors are less than fully rational. It views managerial fi

Research in behavioral corporate finance takes two distinct approaches. The first emphasizes that investors are less than fully rational. It views managerial fi

One of the most influential ideas in the past 30 years is the Efficient Markets Hypothesis, the idea that market prices incorporate all information rationally a

Set in June 2001, the case places the student in the role of Scott Topping, Director of Corporate Finance at Southwest Airlines. Scott is responsible for the a

A significant topic within the behavioral finance literature is the notion of perceived risk pertaining to novice investors (i.e. individuals, finance students)

The Fourier transform is an important tool in Financial Economics. It delivers real time pricing while allowing for a realistic structure of asset returns, taki

This paper is a review of the central theoretical literature. The most important arguments for what could determine capital structure is the pecking order theo

Enron Board’s Finance Sub-Committee’s approval of the first bankrupting Raptor transaction, Talon, is examined in as much detail as published documents allow.

We present a model of the effects of legal protection of minority shareholders and of cash-flow ownership by a controlling shareholder on the valuation of firms

Following the largest M&A wave in history, it is appropriate to assess the evidence on the profitability of this activity. One popular view is that merger activ

Mutual fund returns strongly persist over multi-year periods - that is the central finding of this paper. Further, consumer and fund manager behavior both play

The main objective of this paper is to survey and evaluate the performance of the most popular univariate VaR methodologies, paying particular attention to thei

There is often an unfortunate strain of pedantry running through the teaching of quantitative finance, one involving an excess of abstraction, formality, rigor

This book presents 46 case studies in finance, targeted toward upper-level undergraduates and introductory and intermediate-level MBA students. The purpose of t

The efficient markets theory reached the height of its dominance in academic circles around the 1970s. Faith in this theory was eroded by a succession of discov

This paper examines the pervasiveness of earnings management across 31 countries between 1990 and 1999. It documents systematic differences in earnings manageme

Some scholars have argued that globalization should pressure firms to adopt a common set of the most efficient corporate governance practices, while others main

This paper draws upon the modern science of finance to address several important practical issues in personal finance. Chief among these is how much to save for

Recent research studying the link between law and finance has concentrated on country-level investor protection measures and focused on differences in legal sys

Updated governance indicators report estimates of six dimensions of governance for 175 countries in 2000-01. They can be compared with those constructed for 199