Asset management of local wealth-holders

The Stochastic Programming Approach to Asset, Liability and Wealth Management

Asset Prices and Wealth Inequality∗

This paper uses recently available data on the top of the wealth distribution to study the relationship between asset prices and wealth inequality. I document three stylized facts: (1) the share of wealth invested in equity increases sharply in the right tail of the wealth distribution, (2) when stock market returns are high, wealth inequality increases and (3) higher wealth inequality predicts...

Shareholder Wealth Effects of MANAGEMENT Regulatory COMPLIANCE

Purpose: This paper addresses whether and how the Sarbanes-Oxley Act of 2002(SOX) affects shareholder wealth (firm value) by focusing on the trade-off between improved corporate governance leading to a lower cost of capital and increased managerial compliance costs of regulations. Design/Methodology: We use an analytical model of solving the management utility maximization function and the cha...

Asset-Exchange Model and wealth distribution

The scientific study of economic inequality has drawn a major interest due to the ever growing uneven distribution of wealth within the whole society. According to Oxfam International, in 2010, 388 individuals holds as much wealth as half of the world population. And this number has, in 2016, decreased to 62 individuals (Hardoon and Ayele, 2016). It is a very important but extremely hard proble...

Wealth distributions in asset exchange models

A model for the evolution of the wealth distribution in an economically interacting population is introduced, in which a specified amount of assets are exchanged between two individuals when they interact. The resulting wealth distributions are determined for a variety of exchange rules. For “random” exchange, either individual is equally likely to gain in a trade, while “greedy” exchange, the ...