Due to the immateriality of financial services and products they lend themselves handsomely for sale on the WWW. This may be one of the main reasons why the financial services industry has gained a cutting edge in the net with respect to other industries. Thus, at the beginning of the third millennium, the market for financial services is undergoing a fundamental shift since it is questionable ...

This research utilizes the Agent-Based Model to clarify microscopic and macroscopic links between investor behavior and price fluctuations in the financial market. This analysis places focus on the role that investors’ overconfidence plays in the financial market. As a result of this analysis, it has been found that overconfident investors are generated in a bottomup fashion in the market.

---------------------------------------------------------------------Abstract------------------------------------------------------------------Now a day’s investors invest money in financial products. Financial operations are not local but wide-ranging to all the countries in the world. Stock Market is the market for security where organized issuance and trading of Stocks take place either thro...

Emphasising the scope for further growth in institutional investment, in Europe in particular, this paper focuses on the impact of institutional investment on the efficiency and stability of financial systems. The paper stresses the scope for efficiency gains arising from an increasing role of institutional investors, reflecting – inter alia – their role in improving corporate governance. The p...

Increased globalization of financial and product markets has raised the interest of both market participants and regulators in the quality of financial reporting worldwide. The rise in the volatility of stock returns across the globe in the past couple of years has also been a concern. Could greater transparency in financial statement information reduce volatility and produce more accurate stoc...

We address explicitly the issue of risk in the theory of the firm. To that end, we present a model in which the shareholders’ portfolio selection of assets and the decisions of the firm are jointly determined through the market process. The model allows to study the role of markets and prices on the type of risky activities undertaken by a firm and the allocation of random profit among sharehol...

What are the effects of financial market imperfections on the fluctuations in unemployment and vacancies in the labor market? Standard DSGE models are silent about this since they have not modeled unemployment directly. In this paper I augment a standard monetary DSGE model with explicit financial and labor market frictions. The financial frictions are modeled as Bernanke, Gertler and Gilchrist...

Decentralization can complement market liberalization by strengthening incentives of agents to exploit local information in response to market signals. In China, however, banks centralized lending authority following financial reforms in the mid-1990s. We offer a new theory of financial decentralization in which centralization provides a credible commitment not to refinance bad projects by redu...

BACKGROUND In the current era of strong worldwide market couplings the global financial village became highly prone to systemic collapses, events that can rapidly sweep throughout the entire village. METHODOLOGY/PRINCIPAL FINDINGS We present a new methodology to assess and quantify inter-market relations. The approach is based on the correlations between the market index, the index volatility...