Individual stocks options in aggregate may appear to be similar to index options in that they are driven by the same fundamentals and their prices are affected by risk in similar ways. But they are dissimilar in one important way: ...

The terms under which firms borrow can be revealing about what they think of their future prospects, according to investigations by Vidhan Goyal and Wei Wang, who looked at instances when firms chose short- or long-term debt matur ...

Callaway Golf is a leading producer of golf equipment; American Software is a small company specializing in software for supply chain management. Two different companies and two different industries. Yet, as it turns out, Callaway ...

Understanding and estimating consumer demand in durable goods has been a challenge to many marketing scholars and economists since they do not have access to good data to study them. In studying consumer preference and brand compe ...

A consumer receives an offer for a new version of a mobile phone that will be released in two months: buy now and enjoy a 15 per cent discount. The offer will last only for a week, but the consumer is of two minds. She hasn’ ...

Accounting harmonization plays an important role in global capital markets. A single set of financial reporting standards around the world potentially can facilitate cross-border comparisons of financial data and make it easier fo ...

A consumer feels unwell and decides to buy some medicine to treat the illness. The local drug store offers a choice of Western or alternative remedies (such as TCM – traditional Chinese medicine), but the consumer’s ch ...

Anchoring bias happens when people overemphasize a starting point when they make predictions or decisions. In the case of analysts, Ling Cen, Gilles Hilary and K.C. John Wei show that their forecast earnings per share (FEPS) are i ...

The movie industry is characterized by a high seasonality in viewer demand. In the US, the majority of revenues are concentrated around major public holidays in summer and winter, and so movie studios tend to time major releases f ...

Rounding off numbers to zero or five for earnings forecasts can help to simplify and communicate their value, but it is not the most accurate form of measurement. Previous research has suggested that analysts who round off are les ...