INVESTMENT MINDSET AND BEHAVIORAL CHARACTERISTICS OF OLDER VICTIMS OF INVESTMENT FRAUD

Behavioral Biases and Investment

We use a new and unique dataset to investigate the way investors react to prior gains/losses and the so called ”familiarity” bias. We distinguish between di¤erent behavioral theories (loss aversion, house-money e¤ect, mental accounting) and between behavioral and rational hypotheses (pure familiarity and informationbased familiarity). We show that, on an yearly horizon, investors react to previ...

Individual Differences in Susceptibility to Investment Fraud

Investment, Shareholder Monitoring and The Economics of Corporate Securities Fraud

In this study, I investigate the economic determinants of firms’ propensity to commit securities fraud and the determinants of fraud detection. The analysis is based on a new handcompiled fraud sample of private securities class action litigation suits filed between 1996 and 2003 involving allegations of accounting irregularities. I use econometric methods to account for the unobservability of ...

Investment Strategies, Fund Performance and Portfolio Characteristics

This paper provides extensive evidence on portfolio characteristics of mutual funds and studies the relation between fund performance and the fund manager's investment strategy. The results show that neither momentum characteristics nor the valuation of stocks can explain differences in fund performance. However, the paper finds a negative firm-size effect that partly explains previous findings...

Bullish Behavioral Health Market Drives Investment

We’ve listened closely to the recent Cain Brothers’ House Calls on behavioral health[2] and, like many professionals in this market, we believe these factors and others will continue to drive investment. As a result, we remain bullish on this sector of health care. Moreover, there are additional factors that contribute to a strong market and private equity investors are well situated to take ad...