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Open Access. Powered by Scholars. Published by Universities.®

2008

Corporate Finance

Behavioral Finance

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Full-Text Articles in Business

Household Financial Ratios: A Review Of Literature, Nathan Harness, Michael Finke, Swarn Chatterjee Dec 2008

Household Financial Ratios: A Review Of Literature, Nathan Harness, Michael Finke, Swarn Chatterjee

Swarn Chatterjee

The literature on household financial ratios provides insight into the characteristics related to meeting common investment asset, debt, and liquidity guidelines. We know much about the contemporaneous relation between ratios and household characteristics, but the literature exploring the impact of meeting ratio thresholds on subsequent financial success is in its infancy. Ratios can be useful heuristics that efficiently provide information about financial status as well as a prescriptive guideline to motivate more efficient financial behavior. While the existing literature provides some insight into which households have adequate ratios, there are opportunities for additional empirical scrutiny and application of household resource …


Effects Of Friendship In Transactions In An Emerging Market: Empirical Evidence From Brazil, Wesley Mendes-Da-Silva Oct 2008

Effects Of Friendship In Transactions In An Emerging Market: Empirical Evidence From Brazil, Wesley Mendes-Da-Silva

Wesley Mendes-Da-Silva

This paper considers the inclusion of human behavioral aspects and implications of cognitive psychology and anthropology in decisions relating to the emerging field of behavioral finance. The formulated hypotheses were tested using 400 questionnaires, answered by students enrolled in MBA programs. The principal results suggest that individuals involved in transactions among friends or among strangers assume different behaviors—friends agree about the price attributed to an asset, while strangers show the propensity to bargain.