Financial markets and investment decision making

Date: 

2007

Summary: 

This project investigates issues involving financial markets and investment decision making (both individual and corporate decision making). The project also focuses on the application of finance and financial markets to development economics.

Issue: 

My work in the area of financial markets and investment decision making investigates various market frictions and behavioral biases that affect how individuals and/or corporations make investment decisions. This work will facilitate a better understanding of these frictions to enable better links between investment theory and actual investment decision making behavior. My work in the area of finance applied to economic development primarily deals with microfinance institutions (MFIs) in developing countries. Whereas much of the existing literature dealing with MFIs focuses on ways to "intervene in credit markets" to enable the poor around the world to have access to capital, this research examines ways to harness the international capital markets for the mutual benefit of MFIs and investors.

Response: 

I have made a good deal of progress in my research on financial markets and investment decision making. My paper "Stock Market Participation and the Internet" is forthcoming in the Journal of Financial and Quantitative Analysis. My paper "Bubbles or Convenience Yields? A Theoretical Explanation with Evidence from Technology Company Equity Carve-Outs" was accepted for publication in the International Review of Economics and Finance. My paper "Culture and Entrepreneurship? African American and Immigrant Self-Employment in the United States" was accepted for publication in the Journal of Socio-Economics. My work "Harry M. Markowitz and Modern Portfolio Theory" is forthcoming in the International Encyclopedia of the Social Sciences, 2nd Edition. I revised my working paper investigating corporate decision making behavior with respect to merger and acquisition decisions. I continued my project investigating investment decision making with respect to 529 College Savings Plans. I have also made progress on my research relating to finance and economic development. My work "The Securitization of Microloans" was accepted for publication in the book Can Biotechnology and Capital Markets Work for the Poor? I presented my work on capital structure and microfinance institutions (MFIs) at the Northeast Universities Development Consortium Conference at the Kennedy School of Harvard University.

Impact: 

I believe that my work sheds light on some previously unexplored and open questions in the finance literature.

Submitted by: 

  • Bogan, Vicki L

International focus: 

  • United States of America