Download or read book Financial Estimates Against Investors Preferences written by Ozlem Arikan and published by . This book was released on 2017 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This experimental study investigates how the characteristics of an estimate in a sensitivity disclosure and the level of threat it presents to investors' preferences interact to influence investors' risk judgments. Firstly, I predict and find that variation in an estimate affects not only investors' judgment on a related issue but also their future judgments on an unrelated issue. Secondly, I predict and find that investors are more sensitive to variations in an estimate when information contained in the estimate presents less threat to their preferred conclusions than when it presents greater threat. Finally, I predict and find that investors perceive more uncertainty regarding the association between the disclosed risk factor and the estimated financial reporting item in the estimate when the information presents greater threat.
Download or read book Probability Misestimation and Preferences in Financial Investment Decision written by Marc Oliver Rieger and published by . This book was released on 2009 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the influence of systematic probability misestimation on complex financial investment decisions on the context of structured financial products. Structured products have in recent years become more and more complex. We study the question whether this complexity might be a sophisticated method to exploit systematic biases in probability estimation of investors in order to make products look safer and more attractive than they actually are. We present results of an experiment that focused on probability estimates in the context of certain classes of structured products, in particular barrier reverse convertibles, bonus certificates and worst-of basket certificates. We also investigated potential ways to de-bias investors by providing additional information.
Download or read book Investors Preferences in Financing New Ventures written by Francesco James Mazzocchini and published by Springer Nature. This book was released on 2023-05-04 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book aims at providing an empirical understanding of the main drivers affecting investors’ preferences in financing new ventures through equity crowdfunding (ECF) and determining fundraising campaign success. ECF is increasing in prominence as a route for new ventures in obtaining external financial resources. To raise capital, entrepreneurs are required to convey quality signals of their proposals with real-time information and knowledge sharing. This book advances knowledge in entrepreneurial finance by investigating the factors that affect individuals’ decisions to participate in ECF. The authors adopt a data mining approach to extract publicly available information from a multitude of crowdfunding platforms across different countries, producing a unique dataset. The book uses an innovative hybrid analysis to generate knowledge patterns creating data-driven models on one hand, and on the other test research hypotheses adopting statistical models to investigate empirical evidence in line, or in contrast, with the extant literature. The book also integrates organizational theories to examine the extent to which ECF platform managers follow a strategy of isomorphism in their choice of information disclosure. The final part of the book discusses how signals are interpreted by investors, how these affect financing preferences, and ultimately the successful completion of a fundraising campaign. The book will be of interest to academics and practitioners in entrepreneurial finance, FinTech, and investment behaviour.
Download or read book Applied Choice Analysis written by David A. Hensher and published by Cambridge University Press. This book was released on 2015-06-11 with total page 1219 pages. Available in PDF, EPUB and Kindle. Book excerpt: A fully updated second edition of this popular introduction to applied choice analysis, written for graduate students, researchers, professionals and consultants.
Download or read book Strategic Asset Allocation written by John Y. Campbell and published by OUP Oxford. This book was released on 2002-01-03 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic finance has had a remarkable impact on many financial services. Yet long-term investors have received curiously little guidance from academic financial economists. Mean-variance analysis, developed almost fifty years ago, has provided a basic paradigm for portfolio choice. This approach usefully emphasizes the ability of diversification to reduce risk, but it ignores several critically important factors. Most notably, the analysis is static; it assumes that investors care only about risks to wealth one period ahead. However, many investors—-both individuals and institutions such as charitable foundations or universities—-seek to finance a stream of consumption over a long lifetime. In addition, mean-variance analysis treats financial wealth in isolation from income. Long-term investors typically receive a stream of income and use it, along with financial wealth, to support their consumption. At the theoretical level, it is well understood that the solution to a long-term portfolio choice problem can be very different from the solution to a short-term problem. Long-term investors care about intertemporal shocks to investment opportunities and labor income as well as shocks to wealth itself, and they may use financial assets to hedge their intertemporal risks. This should be important in practice because there is a great deal of empirical evidence that investment opportunities—-both interest rates and risk premia on bonds and stocks—-vary through time. Yet this insight has had little influence on investment practice because it is hard to solve for optimal portfolios in intertemporal models. This book seeks to develop the intertemporal approach into an empirical paradigm that can compete with the standard mean-variance analysis. The book shows that long-term inflation-indexed bonds are the riskless asset for long-term investors, it explains the conditions under which stocks are safer assets for long-term than for short-term investors, and it shows how labor income influences portfolio choice. These results shed new light on the rules of thumb used by financial planners. The book explains recent advances in both analytical and numerical methods, and shows how they can be used to understand the portfolio choice problems of long-term investors.
Download or read book Investors and Markets written by William F. Sharpe and published by Princeton University Press. This book was released on 2011-01-01 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Investors and Markets, Nobel Prize-winning financial economist William Sharpe shows that investment professionals cannot make good portfolio choices unless they understand the determinants of asset prices. But until now asset-price analysis has largely been inaccessible to everyone except PhDs in financial economics. In this book, Sharpe changes that by setting out his state-of-the-art approach to asset pricing in a nonmathematical form that will be comprehensible to a broad range of investment professionals, including investment advisors, money managers, and financial analysts. Bridging the gap between the best financial theory and investment practice, Investors and Markets will help investment professionals make better portfolio choices by being smarter about asset prices. Based on Sharpe's Princeton Lectures in Finance, Investors and Markets presents a method of analyzing asset prices that accounts for the real behavior of investors. Sharpe makes this technique accessible through a new, one-of-a-kind computer program (available for free on his Web site, at http://www.stanford.edu/~wfsharpe/apsim/index.html) that enables users to create virtual markets, setting the starting conditions and then allowing trading until equilibrium is reached and trading stops. Program users can then analyze the final portfolios and asset prices, see expected returns, and measure risk. In addition to popularizing the most sophisticated form of asset-price analysis, Investors and Markets summarizes much of Sharpe's most important previous work and reflects a lifetime of thinking about investing by one of the leading minds in financial economics. Any serious investment professional will benefit from Sharpe's unique insights.
Download or read book Behavioral Finance and Asset Prices written by David Bourghelle and published by Springer Nature. This book was released on 2023-04-05 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent decades, the financial markets have experienced various crises, shocks and disruptive events, driving high levels of volatility. This volatility is too strong to be fully justified simply by changes in fundamentals. This volume discusses these highly relevant issues with special focus on asset pricing and behavioral finance. Financial price assets of the 2020s appear to be driven by various attractors in addition to fundamentals, and there is no doubt that investor emotions, market sentiment, the news, and external factors such as uncertainty all play a key role. This has been clearly observed in recent years, especially during the ongoing coronavirus pandemic that has changed the common perception of the way financial markets work.
Download or read book Guideline for Financial Statements written by Mike G. and published by GRIN Verlag. This book was released on 2017-05-30 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract from the year 2017 in the subject Economics - Finance, grade: 1,0, , language: English, abstract: This text provides a detailed approach to financial accounting for advanced readers. The basics like the double-bookkeeping method according to the IFRS should be clear and are extended to topics like equity (diverse classes of shares), debt (primary bonds) and investments (FVTPL, FVOCI, etc.). All these accounting rules are stated and supported by several figures, graphics, and pictures. Recommended for every middle-class company with a finance department or planning an expansion. Also, underlying concepts of different market (movements) are stated and linked to the related IAS principles. Even though the IFRS is the international standard, the German GAAP or the US GAAP are slightly deviating from it, but due to the progressing globalization, the IFRS approach is more and more accepted within the EU and soon even in Germany. But even now this text provides with enough information about the underlying structure and makes it much easier to understand the German or US methods.
Download or read book Financial Shenanigans written by Howard M. Schilit and published by McGraw Hill Professional. This book was released on 2002-03-22 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: Techniques to uncover and avoid accounting frauds and scams Inflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud. It presents tools that anyone who is potentially affected by misleading business valuationsfrom investors and lenders to managers and auditorscan use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers.
Download or read book Equity Crowdfunding for Investors written by David M. Freedman and published by John Wiley & Sons. This book was released on 2015-06-15 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Learn the ins and outs of equity crowdfunding with this informative guide Equity Crowdfunding for Investors is a comprehensive, objective, and authoritative guide to the social and financial rewards of crowdfunding. Before now, angel investing – and the spectacular returns possible in this asset class – has been off-limits to all but the wealthiest Americans. Now equity crowdfunding portals allow the general public to buy shares in startups and fast-growing private companies for the first time in generations. This book provides the guidance individuals need to invest wisely, tempering the excitement of leading-edge technology, innovative business models, and exciting new brands with thorough, practical know-how – including investor limits and requirements, portfolio strategy, deal terms, and much more. Readers will learn the pros and cons of investing in equity crowdfunding so they can make an informed investment decision, as well as best practices for finding, researching, evaluating, and buying into potentially profitable startups. Digital components include tables, graphs, comparison charts, screen captures, checklists, and other tools that further enable readers to make suitable investment choices. Equity crowdfunding is a new, exciting, and evolving way for growing businesses to raise capital and for average investors to buy equity in those businesses. It has been hailed as a "game changer" in the private capital markets, particularly the angel investment asset class, which includes angel investing. This book shows readers how to take full advantage of this new avenue of investment, without being taken advantage of themselves. Make smarter investment decisions Avoid being ripped off Find the best information available Understand the SEC rules and limits Equity crowdfunding can produce huge returns. It also comes with huge risk. Some companies will succeed, but many will fail. Everyday investors can mitigate some risk and increase their chance of profit with the fundamental insight provided in Equity Crowdfunding for Investors.
Download or read book Financial Management and Investment Decisions written by Jagmohan Negi and published by Laxmi Publications. This book was released on 2012-05 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Invisible Tax Preferences on Investment and Tax Preference Measures written by Richard C. Sansing and published by . This book was released on 2013 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops and analyzes a model in which tax considerations and financial reporting considerations have countervailing effects on a firm's investments in internally developed intangible assets. It also proposes and estimates a new measure of tax preferences, which we call the economic effective tax rate. This measure reflects both investments in intangible assets and the use of debt financing, neither of which generates a book-tax difference. Our measure indicates that the economic effective tax rate was about 18 percent between 1988 and 2005, when the statutory tax rate was either 34 or 35 percent.
Download or read book Investors in Private Equity Funds written by Daniel Hobohm and published by Springer Science & Business Media. This book was released on 2010-07-03 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: Daniel Hobohm analyses investments by international investors in private equity and venture capital funds over the last two decades. He compares different investor types in their fund preferences, home bias and investor responses to market shocks.
Download or read book Practical Approach to Business Investment Decisions written by Richard J. Bristow and published by Springer. This book was released on 1979-06-17 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook Of The Fundamentals Of Financial Decision Making In 2 Parts written by Leonard C Maclean and published by World Scientific. This book was released on 2013-05-10 with total page 941 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook in two parts covers key topics of the theory of financial decision making. Some of the papers discuss real applications or case studies as well. There are a number of new papers that have never been published before especially in Part II.Part I is concerned with Decision Making Under Uncertainty. This includes subsections on Arbitrage, Utility Theory, Risk Aversion and Static Portfolio Theory, and Stochastic Dominance. Part II is concerned with Dynamic Modeling that is the transition for static decision making to multiperiod decision making. The analysis starts with Risk Measures and then discusses Dynamic Portfolio Theory, Tactical Asset Allocation and Asset-Liability Management Using Utility and Goal Based Consumption-Investment Decision Models.A comprehensive set of problems both computational and review and mind expanding with many unsolved problems are in an accompanying problems book. The handbook plus the book of problems form a very strong set of materials for PhD and Masters courses both as the main or as supplementary text in finance theory, financial decision making and portfolio theory. For researchers, it is a valuable resource being an up to date treatment of topics in the classic books on these topics by Johnathan Ingersoll in 1988, and William Ziemba and Raymond Vickson in 1975 (updated 2nd edition published in 2006).
Download or read book Handbook of the Economics of Finance written by G. Constantinides and published by Elsevier. This book was released on 2003-11-04 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arbitrage, State Prices and Portfolio Theory / Philip h. Dybvig and Stephen a. Ross / - Intertemporal Asset Pricing Theory / Darrell Duffle / - Tests of Multifactor Pricing Models, Volatility Bounds and Portfolio Performance / Wayne E. Ferson / - Consumption-Based Asset Pricing / John y Campbell / - The Equity Premium in Retrospect / Rainish Mehra and Edward c. Prescott / - Anomalies and Market Efficiency / William Schwert / - Are Financial Assets Priced Locally or Globally? / G. Andrew Karolyi and Rene M. Stuli / - Microstructure and Asset Pricing / David Easley and Maureen O'hara / - A Survey of Behavioral Finance / Nicholas Barberis and Richard Thaler / - Derivatives / Robert E. Whaley / - Fixed-Income Pricing / Qiang Dai and Kenneth J. Singleton.
Download or read book A Practitioner s Guide to Asset Allocation written by William Kinlaw and published by John Wiley & Sons. This book was released on 2017-05-22 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the formalization of asset allocation in 1952 with the publication of Portfolio Selection by Harry Markowitz, there have been great strides made to enhance the application of this groundbreaking theory. However, progress has been uneven. It has been punctuated with instances of misleading research, which has contributed to the stubborn persistence of certain fallacies about asset allocation. A Practitioner's Guide to Asset Allocation fills a void in the literature by offering a hands-on resource that describes the many important innovations that address key challenges to asset allocation and dispels common fallacies about asset allocation. The authors cover the fundamentals of asset allocation, including a discussion of the attributes that qualify a group of securities as an asset class and a detailed description of the conventional application of mean-variance analysis to asset allocation.. The authors review a number of common fallacies about asset allocation and dispel these misconceptions with logic or hard evidence. The fallacies debunked include such notions as: asset allocation determines more than 90% of investment performance; time diversifies risk; optimization is hypersensitive to estimation error; factors provide greater diversification than assets and are more effective at reducing noise; and that equally weighted portfolios perform more reliably out of sample than optimized portfolios. A Practitioner's Guide to Asset Allocation also explores the innovations that address key challenges to asset allocation and presents an alternative optimization procedure to address the idea that some investors have complex preferences and returns may not be elliptically distributed. Among the challenges highlighted, the authors explain how to overcome inefficiencies that result from constraints by expanding the optimization objective function to incorporate absolute and relative goals simultaneously. The text also explores the challenge of currency risk, describes how to use shadow assets and liabilities to unify liquidity with expected return and risk, and shows how to evaluate alternative asset mixes by assessing exposure to loss throughout the investment horizon based on regime-dependent risk. This practical text contains an illustrative example of asset allocation which is used to demonstrate the impact of the innovations described throughout the book. In addition, the book includes supplemental material that summarizes the key takeaways and includes information on relevant statistical and theoretical concepts, as well as a comprehensive glossary of terms.
