Using a unique dataset of actual investment choices, we investigate how the investment choices differ between (1) the optional retirement plan (ORP) funded by the employer and (2) the investments in 403(b) accounts funded by employees themselves using voluntary salary reduction. We find that the...

Behavioral finance studies how subjective behavioral elements introduce distortions in the individual's decision-making process. The empirical study of systematic errors in cognitive reasoning and perception, and ultimately what these errors reveal about the individual's underlying thought...

We find that a favorable (unfavorable) valuation effect for high (low) pricing power firms that are able (unable) to recover tax payments by reducing costs and/or charging higher prices. These findings are robust to alternative measures of valuation (price and returns), as well as long and short...

We examine the method by which firms are sold, auctions or one-on-one negotiations. We define and describe a subset of transactions that result from auction failure (i.e., target-attempted auctions that secure only one bidder). Controlling for endogeneity, firm, and transaction specific...

We show that the firm's decision to pay special dividends is related to its investment opportunities based on growth options that are available within the prevailing economic environment. Specifically, firms are more likely to pay special dividends when their investment opportunities are...

Target and bidder reference points have separate and joint effects on merger deals. A firm whose stock price is more distant from its 52-week high reference point is less likely to attract bids but has a greater likelihood of being acquired by its own managers (versus unaffiliated bidders). Firm...

We study two characteristics found to be associated with reduced financial advisor misconduct: gender and professional designations. Our findings suggest consumer guidelines helpful in avoiding adverse advisor experiences. These can be especially valuable given the advisory market's absence of...

Focusing on highly educated individuals, I explore survey respondents' attitudes towards the financial planning profession and the reasons that may preclude highly educated individuals from using financial planning services. I find that there is significant confusion about how financial planners...

The 2010-2012 Greek crisis that spread to Portugal, Spain, Italy, and Ireland led to a significant risk increase both in terms of systematic and total risk for the firms operating in the five weakest economies of the European Union. A comparison of the risk profile change in the strictly EU...