Professor, Business Management Department, carries with him a long professional experience spanning over 35 years. He earned his Ph.D. from Guru Nanak Dev University, Amritsar (Punjab), India. He has published over 55 research papers to his credit in refereed journals of national and international repute. Dr. Sandhu has also published one book on consumer Demand in India. His research papers ar...

Using airline travel flow between two states as a proxy for geographical accessibility, we demonstrate that geographical accessibility affects the portfolio decisions and performance of both retail and institutional investors. Irrespective of physical proximity, both types of investors tilt their portfolios toward firms located in more geographically accessible states. However, only institution...

I develop a framework of the build-up and outbreak of financial crises in an asymmetric information setting. In equilibrium, two distinct economic states arise endogenously: normal times – periods of modest investment, and booms – periods of expansionary investment. Normal times occur when the intermediary sector realizes moderate investment opportunities. Booms occur when the intermediary sect...

Corporate bond markets may suffer from investors’ lack of competence in screening out low-quality issuers. We use data from the Israeli capital market in 1999-2009 to investigate the quality of corporate bond issuers and the role of the institutional investors in the screening process in the corporate bond market. The findings suggest that higher quality firms were more likely to issue bonds, b...

Executive summary. Non-U.S. equities currently account for close to 55% of global market capitalization, thus representing a significant opportunity for U.S. investors. In addition, the portfolio of an investor who combined non-U.S. equities with U.S. equities over the past several decades would have experienced lower average volatility—despite similar realized returns and volatilities in each ...

Researchers have long recognized the importance of understanding corporate risk disclosures and conducted empirical studies to investigate various research questions. This dissertation particularly focuses on investigating the impact of these textual risk disclosures on post-disclosure risk perceptions of investors. The objective of this dissertation is two-fold. Firstly, we aim to design an au...

This paper characterizes the optimal linear financial transaction tax in an equilibrium model of competitive financial markets. As long as investors hold heterogeneous beliefs about the returns of assets in fixed supply and the planner calculates welfare using any single belief, we expect the optimal tax to be positive, even when a fraction of trading is fundamental. Strikingly, the optimal tax...

In order to explore the incentives for information acquisition in financial markets, a model of the joint information and portfolio choice is developed. Investors are allowed to acquire a number of signals that inform about a risky asset’s dividend, and “informational efficiency” is defined as a social planner’s preferred signal allocation. If prices are fully revealing, a complete rational exp...

We employ a model of leverage-induced explosive behavior in financial markets to develop a measure of financial market instability. Specifically, we derive a quantitative condition for how large levered investors can become relative to the whole market before the demand curve for securities suddenly becomes upward-sloping and small price declines cascade as levered investors are forced to liqui...