Cognitive biases lead entrepreneurs to overinvest in their own companies, over exposing themselves to idiosyncratic risk. Our novel theoretical model explains entrepreneurial under-diversification by measuring the amount of potential bias in entrepreneurs' portfolio allocations brought about by...

This paper examines how mutual funds respond to constraints imposed by asset growth. We find a fund's decision to switch management structure to be largely driven by asset growth. However, we find little evidence that changes in management structure are associated with superior fund performance,...

Financial institutions have the responsibility to measure an investor's risk tolerance to determine his or her risk profile. Once an investor's risk profile is determined, financial institutions are able to more accurately identify which financial products are suitable for the investor. Several...

Research relating to the influence of investor's demographic factors and personality traits on financial risk tolerance receives increasing attention. Financial risk tolerance refers to the degree of uncertainty an investor is willing to bear, with regards to the financial risks taken on. The...

Disruptive innovations (DI) have the potential to fundamentally change markets and their power relations: Specifically, established companies are confronted with the threat of being forced out of the market by DI. At the same time, companies also have the opportunity to control the market's...