We examine the capital structure policies of Korean firms using survey data for business group (chaebol) firms and independent firms. Our results are compared with the findings in the earlier studies for developed economies: Graham and Harvey (2001) for the U.S. and Brounen, De Jong, and Koedijk...

Most of the previous research in the asymmetric information problem treats adverse selection and moral hazard separately, though they may coexist and interact with each other. We build a principal-agent model to examine optimal contracts in a competitive insurance market facing adverse selection...

In this paper, the marginal effects of changes (due to non-stationarity or estimation errors) in the REIT-stock risk premium and the REIT-stock correlation on the optimal portfolio asset mix of REITs, stocks, and bonds are determined. Employing a mean variance utility function and considering...

We examine the sentiment levels of individual investors relative to subsequent short-term market returns for 1992-2010. We find that sentiment, proxied by percentage of investors who are “bullish” on the market, is significantly negatively related to the subsequent three- and six-month...

This article documents significant dispersion in the beta estimates of exchange-traded funds as available on some leading financial websites. To the best of the authors' knowledge, this is the first systematic study of the dispersion of betas as seen on major finance websites. Almost 40 million...

The Value Line Investment Survey, with its well-known timeliness and safety rankings, has managed to generate a superior performance record over time. The authors' findings show that Value Line's timeliness ranks were significant predictors of success during our study period, even when several...