1,721,000 research outputs found
Do overconfident and over-optimistic entrepreneurs invest too much in their companies? Theory and evidence from Italian SMEs
No full textResearch Summary: Entrepreneurs often invest a large share of their personal wealth in their firms, exposing themselves to idiosyncratic risk. We propose a theoretical model showing how overconfidence and overoptimism may help to explain this evidence. We focus on overprecision, but we also consider overestimation and overplacement. Numerical examples show a more substantial role for overconfidence than overoptimism in determining entrepreneurs' portfolio allocations. We test the effect of the two latent variables—overconfidence and overoptimism—on small business owners' portfolio allocations. We use a unique dataset including private information on Italian small and medium enterprises and a structural equation modeling approach. A positive relationship between overconfidence and entrepreneurs' investments in their own companies is confirmed. Managerial Summary: We propose a theoretical model showing how overconfidence and overoptimism explain the evidence that entrepreneurs invest a large share of their personal wealth in their firms, exposing themselves to specific risk. Overconfidence leads to underestimating risk, while overoptimism to overestimate expected returns. Using numerical examples, we show a more substantial role for overconfidence than overoptimism in determining entrepreneurs' portfolio allocations. Using a unique dataset including private information on Italian small and medium enterprises, we test our model and find a positive relationship between overconfidence and small business owners' investments in their own companies
Could Financial Literacy Become a Key Variable to Examine Social and Economic Inequalities? A Study on Italian Regions
No full textItaly is characterized by deep regional inequalities. Macroeconomic variables like Gross Domestic Product (GDP), GDP per capita and social exclusion rate, allow to compare Italian regions, but nowadays it is even more important to dig in the consequence of these inequalities, and to get insights that may help explaining financial fragility. The inability to take proper financial decisions has negative effect for young adults in particular, since they are more vulnerable than adults. We try to verify if the observed inequalities in Italy are linked to different levels of financial literacy among young adults in distinct regions. We test the level of financial literacy on young adults depending on their regions of birth and compare the results with inequalities in GDP, poverty and social exclusion. We find evidence suggesting that young adults’ financial literacy is a key variable to examine these inequalities
L’accuratezza delle previsioni degli analisti e la reazione di mercato ai cambi di raccomandazione e di target price
No full textEditoriale al numero speciale intitolato “Analisti finanziari: previsioni, raccomandazioni e rapporto con il mercato”. I contributi contenuti nel numero speciale dedicato agli analisti finanziari sono stati elaborati nell’ambito del Progetto di Ricerca di Rilevante Interesse Nazionale (PRIN) “Oltre le previsioni degli analisti. Caratteristiche dei report e potenziali reazioni del mercato” (periodo settembre 2008 – settembre 2010) sviluppato dalle Università di Padova, Bologna e Ca’ Foscari Venezia. Le ricerche hanno come comune denominatore l’analisi del ruolo degli analisti come intermediari dell’informazione tra le società e il mercato. Si analizzano il tema dell’accuratezza delle stime e si verifica la reazione del mercato a cambi di raccomandazioni e di target price. Anche se i due temi sono stati investigati in precedenti studi, le analisi proposte, oltre a presentare il vantaggio di fornire nuovi risultati sul caso italiano, sono innovative rispetto a quelle già note in letteratura da molteplici punti di vista
The need for transparency, responsibility and accountability: The case of facebook IPO
No full textThis paper aims to describe and critically analyze the Face book Initial Public Offering (IPO), initially focusing on the pre-IPO assessments made by underwriters, and then comparing them with the market evidence. The initial weak performance disappointed all those investors believing in a fast stock increase, causing in turn the rise of bad expectations about the company's projects. As a matter of fact, the stock trend did not reflect the enthusiasm that the financial community showed during the IPO's marketing activity or during the road show. The stock demand was far superior than the supply during all the pre-IPO activities, and even after the upward revisions of the price range. Thus, the assessment of the valuation methods used to set the offer price plays a key role to explain the reasons of the stock performance. We analyze analysts' reports to investigate the reasons of their distorted valuations. The case of the Face book IPO stresses the importance of supervision to ensure transparent financial statements and protect investors. Lack of transparency, wrong corporate culture and conflicts of interest may provoke stock crashes and damage investors and the financial system overall. Ensuring integrity of financial reporting and monitoring systems is thus essential to ensure responsibility, as well as accountability
Behavioral finance and wealth management: Market anomalies, investors’ behavior and the role of financial advisors.
No full textCorporate Culture and Frauds: a Behavioral Finance Analysis of the Barclays-Libor case
No full textThe aim of this paper is to use behavioral finance to explain the factors that brought Barclays Plc. to face a £290 million fine (about $440 million), having deliberately tried to manipulate the LIBOR (London Interbank Offered Rate). This sums to the £59.5 million fined by the British Financial Services Authority (FSA) – the highest fine ever imposed by this organization – and respectively £102 million and £128 million by the US Department of Justice and by the Commodity Futures Trading Commission (CFTC). We analyze the reports issued by the U.S. and the British regulatory agencies, and those of financial analysts. Even though the focus of analysis are Barclays’ actions, we compare them with what other market participants did at the time of the analyzed events, to offer a comprehensive look at the financial industry and its dominant culture. In particular, after describing LIBOR rate determination methodology and the behavior of Barclays personnel when violations occurred, we present Barclays’ failures in organizing its own control systems and establishing a proper corporate culture. Finally, we analyze the behavior of market participants and supervisory authority in evaluating Barclays’ financial and ethical performance
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Variations on the Author
Full text link“Variations on the Author” discusses two of Eduardo Coutinho’s recent films (Um Dia na Vida, from 2010, and Últimas Conversas, posthumously released in 2015) and their contribution to the general question of documentary authorship. The director’s filmography is characterized by a consistent yet self-effacing form of authorial self-inscription: Coutinho often features as an interviewer that rather than express opinions propels discourses; an interviewer that is good at listening. This mode of self-inscription characterizes him as an author who is not expressive but who is nonetheless markedly present on the screen. In Um Dia na Vida, however, Coutinho is completely absent form the image, while Últimas Conversas, on the contrary, includes a confessional prologue that moves the director from the margins to the center of his films. This article examines the ways in which these works stand out in the filmography of a director who offers new insights into the notion of cinematic authorship
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