An unexpected death in an apartment can cause a 20% drop in the property’s sale price and further impact those on the same floor, in the same block, and on the same estate, according to HKUST’s Utpal Bhattacharya and colleagues. Focusing on Hong Kong’s real estate market, the authors show that such “haunted houses” can have a sustained negative impact on the ... Read More

An unexpected death in an apartment can cause a 20% drop in the property’s sale price and further impact those on the same floor, in the same block, and on the same estate, according to HKUST’s Utpal Bhattacharya and colleagues. Focusing on Hong Kong’s real estate market, the authors show that such “haunted houses” can have a sustained negative impact on the ... Read More

In the aftermath of financial crises, one might assume individuals become wary of risk. But is that because of what they have seen in the news, or do they need personal experience to act? A new study on the 2007-2009 global financial crisis shows that personal experience is indeed a driving factor and it can motivate people to not only be wary, but to ... Read More

Why and when do forced sales of assets result in discounts of “fire sale” proportions? Although it is known that fire sale discounts exist and can be substantial, it has been difficult to identify when forced sales result in fire sale discounts. Forced sales are typically triggered by industry-wide or asset-specific adverse shocks that affect both supply and ... Read More

Executive pay is one of the most hotly debated topics around. Are executives being fairly compensated for their contributions to firm and shareholder value, or are they overpaid? One of the obstacles to finding the answer has been the difficulty in measuring pay versus contribution, but now Bang Dang Nguyen and Kasper Meisner Nielsen have come up with an ... Read More

Financial constraints have been cited as one of the most important impediments to entrepreneurship, but why do people encounter such constraints? A study of Danish entrepreneurs, some of whom became entrepreneurs after receiving a windfall inheritance, suggests that financial constraints in themselves may not be the central problem. Instead, the low ... Read More

Financial models have shown time and again that it is beneficial for all households to invest in stocks, yet relatively few choose to do so. Until now the assumption has been that pecuniary participation costs turn people off investing. But recent research suggests there may be other deterrents at play. Steffen Andersen and Kasper Meisner Nielsen looked at ... Read More

Do independent directors provide a valuable a service to shareholders? That question has been the subject of inconclusive debate and study. However, two researchers approach the question from an unusual angle - the sudden deaths of independent directors - and show that these board members are indeed deemed beneficial to shareholder value. Using data from 229 ... Read More