We consider the problem of an executive that receives call options as compensation in a dynamic setting. She can influence the stock price return with her effort. In addition, she determines the level of volatility of the stock through the choice of projects. The executive is risk-averse and experiences disutility from the effort. In this framework, we introduce the problem of the company that ...

Various researches have been carried out about benefits of accounting information and their influence on decision making of financial statements users. For example, many researches have examined the relationship between accounting variables and stock returns or stock price. This study determines and compares the relative and incremental content of accounting variables, too. For this purpose, th...

This paper studies the impact of labor ‡exibility on optimal life-cycle portfolio decisions, particularly the ability to change industries or …rms within industries. The model addresses two frequently observed portfolio behaviors that are seemingly inconsistent with rational portfolio choice. The …rst is the tendency of workers and entrepreneurs to hold their company’s stock. The second is the ...

this study seek to examine performance of feltham - ohlsen (1995)valuation model at the tehran stock exchange and is trying to identify relation between intrinsic company value and return. this model is trying to determine the intrinsic value of company using their book value. statistical community of this study includes all tse accepted companies and statistical sample is including 37 tse acce...

Noise traders as one of the key elements of the market play a significant role in determining the market volatilities, returns, and stock market mispricing. Hence, this study attempts to scrutinize the role of noise trading in capital asset pricing. Therefore, by using daily data, samples including 14105 data of 200 companies listed on stock exchange were selected and noise trading index was es...

Ranwa Halasa and Burcu Yildirim have been so successful with their Halasa-Yildirim Consulting Company, that their company has gone public, and is now listed on the New York Stock Exchange under the HY symbol. Suppose that a share of HY stock initially costs $80 per share. Suppose that the HY stock share price over time (measured in years) is modelled as the stochastic process {X(t) : t ≥ 0}, wh...