This paper examines the announcement period and the post acquisition gains of UK acquirers of unlisted targets that are subject to value-ambiguity. The evidence shows that target’s age, size, intangibility of assets, and investments can explain the variations in bidding firm’s abnormal...

The purpose of this paper is to explain briefly from a behavioral point of view, the appearance and the development of speculative bubbles in financial markets. In the first part of the paper, we have presented the most known speculative bubbles among the history and the principal factors...

This paper reports on two experiments that test the descriptive validity of ambiguity models using a natural source of uncertainty (the evolution of stock indices) and both gains and losses. We observed violations of probabilistic sophistication, violations that imply a fourfold pattern of...

This paper aims to explore the relevance of the Theory of Argumentation TA in the complex area of financial reporting. Specifically, we investigated the scope of the phenomenon of persuasion in advertising. It examines advertisements in publications notable economic movement in Colombia. The...

In the paper, we put some foundations for studying asset pricing and finance as a stochastic and behavioral process. In such process, preferences and psychology of agents represent the most important factor in the decision-making of people. Individuals have their own ways of acquiring the...

This study investigates the effects of fundamentals ambiguity and guidance credibility on analyst forecast revisions and manager guidance truthfulness. We manipulate earnings probability precision and managers' (ex ante) guidance credibility in an experiment with an embedded sender-receiver...

This study examines various determinants of idiosyncratic risk from the perspective of un-diversified REIT investors, managers holding options, other option holders, and arbitrageurs. Since real estate investment trusts (REITs) enjoy a unique organizational structure and tax status, the relevant...

This paper studies the question of maximization of expected utility from terminal wealth in a multidimensional jump-diffusion model of incomplete market. The special feature of our approach is that the investor only observes the vector of stock prices leading to a partial information framework....

We study the questions of optimal portfolios and hedging strategies in a market where the asset log-price Y follows a diffusion model whose coefficients are unobservable and are given in terms of a Markov process X. This leads naturally to a partial information setup, where the strategies are...