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This study examines individual decision making in financial contexts. Specifically, the study investigates basic propositions of Prospect Theory (Kahneman and Tversky, 1979) in a variety of decision making contexts that are often faced by corporate managers. In addition, the research explores...
Persistent link: https://www.econbiz.de/10009467811
A growing body of evidence has accumulated on the behavior of volatility for pricing data on a variety of different financial assets. Twenty-four-hour currency markets are a particularly useful vehicle for examining the relationship between information and asset volatility--in part because the...
Persistent link: https://www.econbiz.de/10009467840
The focus of this thesis is twofold. First, the development of a model for the determination of prices of Arrow-Debreu securities implicit in the term structure of interest rates. Second, the implementation of the model, both in a simulated environment and using market data, and the execution of...
Persistent link: https://www.econbiz.de/10009467932
This study examines restructuring in which, (i) two firms exchange operating units (asset-for-asset exchanges), and (ii) a firm divests assets in exchange for an equity stake in the firm acquiring the assets (asset-for-stock exchanges). These transactions are called asset exchanges, as distinct...
Persistent link: https://www.econbiz.de/10009467966
Recent evidence of predictability in asset returns has led to an increased interest in dynamic asset allocation models and trading strategies. Earlier conclusions that technical trading rules are not useful (Fama and Blume, 1966) and gains from market timing are unlikely (Sharpe, 1975) are now...
Persistent link: https://www.econbiz.de/10009467985
This dissertation is comprised of three essays. The first essay is an empirical examination into determining which spot rate processes are well suited to capturing the dynamics of the term structure of interest rates. The second essay explores a relatively new 'Price Deflator' approach to...
Persistent link: https://www.econbiz.de/10009468164
financial data on firms in 17 manufacturing industries. I investigate the impact of real flexibility on firms' finance capacity … finance capacity by lowering the probability of failure, curbing debt overhang and enhancing the collateral value of assets …, or impairs finance capacity by enabling shareholders to risk-shift through risky production plans or asset substitution …
Persistent link: https://www.econbiz.de/10009430790
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