Frontmatter -- CONTENTS -- PREFACE -- ONE. NO ARBITRAGE: THE FUNDAMENTAL THEOREM OF FINANCE -- TWO. BOUNDING THE PRICING KERNEL, ASSET PRICING, AND COMPLETE MARKETS -- THREE. EFFICIENT MARKETS -- FOUR. A NEOCLASSICAL LOOK AT BEHAVIORAL FINANCE: THE CLOSED-END FUND PUZZLE -- BIBLIOGRAPHY -- INDEX

type="main" xml:lang="en" <title type="main">ABSTRACT</title> <p>Firms and institutions are monitored and controlled through a complex set of implicit and explicit contractual relations. Because of these agency theoretic relations, institutional behavior in financial markets is not a simple reflection of the preference...</p>

Hendricks, Patel, and Zeckhauser (1997) (HPZ) find that the response of current to past returns for mutual funds in the presence of survivorship is nonlinear. In our rejoinder to their paper, we verify their results through simulation, provide some intuition for why the result is true, and...