It is observed that stock price fluctuations are slowly in upward phases like bubble, but fast in downward phases like its burst. This paper provides a new theoretical explanation of this phenomenon, especially why stock price drops sharply, based on the timing of stock sales. Investors tend to...

We conducted the trust game experiments with Japanese university students and international students. In the beginning of the trust game, the general attributes of subjects such as gender, school year, faculty and birthplace are mutually informed. All the international students are assigned as...

This paper considers production and hedging decisions of firms under ambiguous price risk. We display that the separation property and the full hedging theorem hold in the presence of ambiguity. We also determine the condition that ambiguity aversion increases optimal hedging position

Eeckhoudt and Schlesinger (2006) introduced a particular class of lottery pairs to characterize the direction of higher-order risk preferences. Using their framework, this paper proposes a new index of higher-order risk aversion to measure the intensity of higher-order risk preferences....

We examine how severity of financial constraints influences a firm's choice of accounting policy. This paper shows that firms with mild financial constraints choose an aggressive accounting policy and those with severe financial constraints choose a conservative accounting policy