scholarly journals Clearly Irrational Financial Market Behavior: Evidence from the Early Exercise of Exchange Traded Stock Options

2001 ◽  
Author(s):  
Allen M. Poteshman ◽  
Vitaly A. Serbin
Keyword(s):  
Financial Market ◽  
Stock Options ◽  
Market Behavior ◽  
Early Exercise

scholarly journals From Shareholder Value to CEO Power: The Paradox of the 1990s

2005 ◽  
Vol 9 (1) ◽  
pp. 7-47 ◽  
Author(s):  
Robert Boyer
Keyword(s):  
Financial Market ◽  
Moral Philosophy ◽  
Bargaining Power ◽  
Stock Options ◽  
Ceo Power ◽  
Economic Theories ◽  
Long Run ◽  
Legal Sanctions ◽  
Top Manager ◽  
Wage Earners

Why did CEO remuneration explode during the 1990s and persist at high levels, even after the Internet bubble burst? This article surveys the alternative explanations that have been given of this paradox, mainly by various economic theories with some extension to political science, business administration, social psychology, moral philosophy and network analysis. It is argued that the diffusion of stock options and financial market-related incentives, supposed to discipline managers, have entitled them to convert their intrinsic power into remuneration and wealth, both at micro and macro level. This is the outcome of a de facto alliance of executives with financiers, who have exploited the long-run erosion of wage earners' bargaining power. The article also discusses the possible reforms that could reduce the probability and the adverse consequences of CEO and top-manager opportunism: reputation, business ethic, legal sanctions, public auditing of companies, or a shift from a shareholder to a stakeholder conception.

scholarly journals Investor Sentiment In The Financial Market: A Survey

2021 ◽  
Author(s):  
Charles A. Aziegbemhin
Keyword(s):  
Neural Networks ◽  
Risk Management ◽  
Financial Market ◽  
Investor Sentiment ◽  
Management Tool ◽  
Market Behavior ◽  
Market Returns ◽  
Wide Acceptance ◽  
Comprehensive Survey ◽  
Alternative Markets

Many techniques like technical analysis, fundamental analysis, neural networks etc are used to forecast market behavior but none of these methods has been consistently acceptable forecasting tool. This thesis surveys more than 200 related published articles that study investor sentiment techniques as derived and applied to forecasting equity, debt and alternative markets. From the literatures, it shows that the application of investor sentiment for evaluating market behavior is gaining wide acceptance. Changes in investor sentiment can trigger changes in the valuation and pricing of assets, therefore offering the ability to forecasting market directions more accurately than other techniques. This study is the most comprehensive survey on investor sentiment techniques and its impact on forecasting a panel of assets in the equity, debt, derivative and other alternative investment markets. It examines forecasting as it affects sentiment, investor sentiment, it influence on market returns, news analytics and its use as profit and risk management tool.

scholarly journals How to Identify an Arbitrage of Type B on Capital Markets

2018 ◽  
Vol 4 (1) ◽  
pp. 41
Author(s):  
Leszek Zaremba
Keyword(s):  
Financial Market ◽  
Matrix Model ◽  
Stock Options ◽  
Listed Company ◽  
Point Of View ◽  
Type B ◽  
Period Matrix ◽  
Treasury Bills ◽  
Put Options ◽  
Black Scholes

We propose here a 1-period matrix model of a fraction of the Polish financial market (for our purposes it will suffice to focus on a fraction of the market) built up from the point of view of the Polish biggest listed company KGHM. Using this model we construct an arbitrage portfolio consisting of 5 different assets, namely shares of KGHM, Treasury bills and 3 kinds of stock options. We recall the concept of arbitrage of type A and type B (called also an arbitrage I and arbitrage II, resp.) and illustrate it with examples. To prove that an arbitrage is possible to conduct, we separately distinguish scenarios when options prices are determined by the Black-Scholes formula, and when they deviate from their theoretical values. We prove that in all those cases an arbitrage of type B can be conducted. Since our approach does not rely on the specifics of Poland as a country, it can be equally well implemented in any other country which offers Treasury bills, as well as call and put options on shares of selected companies (KGHM in the studied case). The purpose of this study is to encourage practitioners to conduct an arbitrage in their own country, especially in a case when call and put options are offered on a local OTC market.

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