Bücher der Reihe Foundations and Trends (R) in Finance

Provides a structured approach to behavioural finance in respect to underlying psychological concepts, formal framework, testable hypotheses, and empirical findings. A key theme of the volume is that the future of finance will combine realistic assumptions from behavioural finance and rigorous analysis from neoclassical finance.

The Economics of Securities Regulation: A Survey gives an overview of the U.S. regulatory system, explores the justifications for regulating securities markets, and describes the qualitative and quantitative literature that assesses the regulatory system's effectiveness.

This monograph provides a comprehensive overview of the role of institutional investors in corporate governance.

Labour income risk is key to the welfare of most people and this risk is mainly insured 'within the firm' and by public institutions, rather than by financial markets. This book asks why such insurance is provided within the firm, and what determines its boundaries. It also explores the connection between risk sharing and firms' capital structure.

Does heterogeneity matter for asset pricing and, in particular, for risk premia? This volume provides a unified framework to better understand this large literature and to reconcile several of the seemingly inconsistent results found in some seminal papers.

Updates an earlier review by the authors. This book includes reviews of recent studies on topics that were covered in the earlier survey, and summarises research on new topics. These new topics cover a broad gamut of issues, ranging from hedge funds' use of leverage and exposure to different risks to their impact on various asset markets.

Provides an updated and comprehensive review of China's financial system and compares it with financial systems in other countries. The book reviews what has worked and what has not within the markets and intermediaries in China, and further considers the effects of the recent development of China's financial system on the real economy.

Puts into perspective one of the most persistent empirical phenomena in finance: equity home bias. The book provides a review of the competing measures of home bias, the explanations for the equity home bias, and lay out the implications of international under-diversification for portfolio formation and the cost of capital of companies.

Explains the models and techniques used in this literature as simply as possible, with the intent of making the literature more accessible; introduces the reader to the main strands of this literature; and explains how dynamic models can be taken to the data and be estimated with the intent to provide a practical, hands-on guide.

Reviews the theoretical literature on disclosure, tying it to the recent policy debate on whether stress-test results should be disclosed. The authors review the nature of stress tests required by the Dodd-Frank act and conducted by the Federal Reserve, an important aspect of which is the public disclosure of the results.

Offers a comprehensive review of AFIT research. The book is designed both to introduce new scholars to this field and to encourage active researchers to expand frontiers related to accounting for income taxes. It includes both a primer about the rules governing AFIT and a review of the scholarly studies in the field.

Standard treatments of continuous-time processes typically don't mention how to adapt the discrete-time linear model concepts and lag operator methods to continuous time. This book attempts that translation and exposits the techniques to make the translation from familiar discrete-time ideas.

Examines the resolution mechanisms for corporate financial distress and bankruptcy not only in the private domain but also in the public domain, and uses corporate finance paradigms to interpret some of these far-reaching developments in financial distress of a systemic nature.

Provides a comprehensive review of the continuous-time modeling techniques of the term structure applicable to value and hedge default-free bonds and other interest rate derivatives. The originality of the survey lies in the fact that it provides a framework in which continuous-time term structure models can be nested and related to each other.

Reviews the extensive theoretical and empirical literature on the efficient markets hypothesis (EMH). Beginning with a brief discussion of current efficient market theory, the authors present the theoretical foundation and discuss the recent empirical evidence on efficiency as it pertains to a range of different markets.

The first review of experimentation in asset pricing, which is both rare and novel. The goal of experimentation is twofold. First, experimentation is meant to evaluate the science behind asset pricing theory. Second, the goal of experimentation is to come to a deeper understanding of asset pricing theory.

Explores the theory and practice of valuation of companies and stocks, providing an invaluable overview of the topic from a practical and scholarly perspective. The book reviews the finance literature on valuation and presents three approaches: discounted cash flow valuation; liquidation and accounting valuation; and relative valuation.

Reviews research related to the role of financial analysts in the allocation of resources in capital markets. The authors provide an organised look at the literature, with particular attention to important questions that remain open for further research.

Reviews the literature on this phenomenon from the original papers by Mehra and Prescott to the present. The author shows that the equity premium - the return earned by a broad market index in excess of that earned by a relatively risk-free security - is not a premium for bearing non-diversifiable risk.

Provides a complete bibliography of the derivatives literature research citing the pioneering work of Fischer Black, Robert Merton, and Myron Scholes, with over 1500 research articles categorized and indexed since 1980. The book includes an introduction by the authors reviewing recent developments in the field.

Summarises the academic research on hedge funds and commodity trading advisors. The hedge fund industry has grown tremendously over the recent years. According to some industry estimates, hedge funds have increased from $39 million in 1990 to about $972 million in 2004 and the number of hedge funds has gone up from 610 to 7,436 in the same period.

Reviews the current academic literature on the macroeconomics of finance. This is the most current and comprehensive review on the subject and will be of interest to both macroeconomists and financial economists.

Reviews the literature that studies the relationship between liquidity and asset prices. The authors review the theoretical literature that predicts how liquidity affects a security's required return and discuss the empirical connection between the two.

Provides the most comprehensive review of all major research domains involving credit default swaps (CDS). CDS have been growing in importance in the global financial markets. However, their role has been hotly debated, in industry and academia, particularly since the credit crisis of 2007-2009.

Provides an overview of how liquidity is measured and of specialized issues in liquidity measurement. The book also examines what is known about cross-sectional and time-series patterns in liquidity. The authors then review how liquidity relates to the corporate finance literature.

There is universal agreement that the cause of the global economic crisis of 2007-09 was the combination of a credit boom and a housing bubble. This book argues that what made this economic shock unique and led to such a severe financial crisis was the behaviour of the large, complex financial institutions that dominate the financial industry.

The firm's capital structure has attracted considerable attention from both academics and practitioners. The empirical capital structure literature explores both the cross-sectional determinants of capital structure as well as time-series changes. This book reviews both aspects of this literature.