A variety of equity-linked insurance contracts such as variable annuities (VA) and equity-indexed annuities (EIA) have gained their attractiveness in the past decade because of the bullish equity market and low interest rates. Due to the complexity of their inherent nature, pricing and risk...

In this research authors show that institutional investors' skill matters the most during high sentiment periods when market signals are noisy. The results reveal that fund managers with the highest (lowest) skill add (lose) $7.71 ($5.64) million of value during high sentiment periods, compared...

There is increasing evidence that the vibrant financial industry has generated a misallocation of human capital between the manufacturing sector and the service sector. In addition, growth in the financial sector has usually been accompanied by bubble booms. Thus, this paper advances a greater...