This paper considers why organizations use promotions, rather than just monetary bonuses, to motivate employees even though this may conflict with efficient assignment of employees to jobs. When performance is unverifiable, use of promotion reduces the incentive for managers to be affected by...

The Paper presents a continuous-time model for the timing of riskless arbitrage when the mispricing between two equivalent portfolios varies stochastically through time under the exogenous impact of liquidity trades and persistent prospect that the arbitrage bubble can 'burst' .

To obtain the maximum benefits from diversification, financial theory suggests that investors should invest internationally because of the larger potential for risk reduction stemming, from the lower correlation existing between assets of different countries. The question that we raise in this...

This paper tests the existence of a risk premium in the one-month and three-month forward exchange markets.

The usual measure of the undiversifiable risk of a portfolio is its beta. Recent research has allowed beta estimates to vary over time, often based on symmetric multivariate GARCH models. There is, however, widespread evidence in the literature that the volatilities of asset returns, in...

There is much evidence in the literature that the volatility of asset returns, in particular those from stock markets, show evidence of an asymmetric response to good and bad news. This paper considers the impact of news on time varying hedges for financial futures. The models are compared with...

We test whether the profitability of HML, SMB, and WML can be linked to future GDP growth. Using data from ten countries, we find that HML and SMB contain significant information about future GDP growth. This information is to a large degree independent of that in the market factor. Even in the...

This paper tests the existence of a risk premium in the one-month and three-month forward exchange markets.

This paper provides an introduction to a form of financial innovation which is the relatively recent phenomenon of asset backed securisation (ABS). An overview of the related issues and importance of this trend towards asset backed securisation in the UK by financial institutions is provided....