Empirical research on European stock markets has shown that they behave differently according to the performance of the leading financial market identified as the US market. A positive sign is viewed as good news in the international financial markets, a negative sign means, conversely, bad news. As a result, we assume that European stock market returns are affected by endogenous and exogenous ...

The stock market is a complex and dynamic system with noisy, non-stationary and chaotic data series. Prediction of a financial market is more challenging due to chaos and uncertainty of the system. Soft computing techniques are progressively gaining presence in the financial world. Compared to traditional techniques to predict the market direction, soft computing is gaining the advantage of acc...

We provide cross-country evidence to examine how financial market development affects innovation. Using a large data set including 34 developed as well as emerging countries, we differentiate the impacts of equity market and credit market development on a country’s innovation productivity measured by patenting. Our baseline results show that, while the development of equity markets encourages i...

Recent research on financial market development has focused on the nature of the legal system. The law-and-finance literature, however, exclusively focuses on the abuse of management power as a major cause of shareholder expropriation. The role of the administrative capability of the state in providing and guaranteeing the institutional foundations for securities development is thereby overlook...

Most agent-based simulation models of financial markets are discrete-time in nature. In this paper, we investigate to what degree such models are extensible to continuous-time, asynchronous modeling of financial markets. We study the behavior of a learning market maker in a market with information asymmetry, and investigate the difference caused in the market dynamics between the discrete-time ...

Financial decisions are among the most significant life-changing decisions that individuals make. There is a strong correlation between financial decision making and human behavior. In this research the relationship between what people think and how stock market moves is investigated. The data from 2010 to 2015 of some of business, political and financial events which directly impact the local ...

Gordon Clark is surely right when he declares that ‘people are often unable to conceptualize immediate circumstances against market forces that operate beyond the boundaries of current experience and at levels or scales that appear abstract rather than material to the interests of those involved’. In this commentary, I claim that the description of the interactions between behavioral predisposi...

financial derivatives are new instruments through which hedging, investment and arbitrage are done in a modern economy. although the word 'derivative'primarily reminds us of options and futures, the major focus of the equity derivatives industry worldwide is on index derivatives. launching index options and index futures in tehran stock exchange, not only increases financial market de...

in some of the new economic growth models, we pay attention to the effects of financial development on economic growth. this research investigates the relationship between capital market and economic growth in macro level during 1991-2011. the research is organized as follows: the introduction comes as the first section. in section ii, we review the literature on the relationship between econom...