• A well developed financial system is necessary for economic development and poverty alleviation (Beck, Demirguc-Kunt and Levine 2004 and Honohan 2004a). The empirical relationship between finance and growth is well established in theoretical literature, as surveyed by Levine (2005). Financial market imperfections are particularly binding on poor or small entrepreneurs lacking collateral, cred...

Using Rawls's theory of justice, this paper addresses the empirical question of whether the socially responsible market economy can help explain the current situation in financial freedom, as well as its recent variation across countries. Utilizing annual data from selected countries of Middle East, North Africa, Asia and Oceania, and static panel estimation techniques, we provide evidence whic...

uncertainty inherent in the financial market was usually consid- ered to be random. however, randomness is only one special type of uncer- tainty and appropriate when describing objective information. for describing subjective information it is preferred to assume that uncertainty is fuzzy. this paper defines the expected payoof trading strategies in a fuzzy financial market within the framewor...

This paper conducts an event study analysis of the market value impact of operational loss events on non-announcing firms in the U.S. banking and insurance industries. We seek evidence of negative or positive information spillovers, i.e., that operational risk events have negative effects on stock prices of non-announcing firms or lead to wealth transfers from announcing to nonannouncing firms....

The conceptually unified theoretical core of modern finance, which includes the efficient market hypothesis, the CAPM, the Modigliani-Miller theorem and the Black-Scholes-Merton approach to option pricing, has been instrumental in the growth of the financial services industry, financial innovation, globalisation, and deregulation. The elevation of finance to the stature of a scientific discipli...

We apply methods of quantum mechanics for mathematical modeling of price dynamics at the financial market. We propose to describe behavioral financial factors by using the pilot wave (Bohmian) model of quantum mechanics. The theory of financial behavioral waves takes into account the market psychology. The real trajectories of prices are determined (through the financial analogue of the second ...