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Full-Text Articles in Finance and Financial Management
Teleinvestmentevangelists: Celebrity, Ritual And Religion And The Quest To “Beat The Market”, E. Douglas, Mary Keller, Elton Mcgoun
Teleinvestmentevangelists: Celebrity, Ritual And Religion And The Quest To “Beat The Market”, E. Douglas, Mary Keller, Elton Mcgoun
Mary L Keller
Purpose – This paper aims to offer a cultural understanding of investor faith in stock picking despite overwhelming evidence questioning its efficacy. Why, in the face of very widely communicated findings calling into question the advice and assistance offered by financial professionals to help them pick stocks or manage their mutual funds, do so many people persist in these practices? The authors believe that the best way to understand investor faith in the efficacy of stock picking is through teleinvestmentevangelists such as Jim Cramer, whose fusion of celebrity and religion taps into the ritualistic elements of investment that usually lie …
Are Ceos Expected Utility Maximizers?, John List, Charles Mason
Are Ceos Expected Utility Maximizers?, John List, Charles Mason
Charles F Mason
Are individuals expected utility maximizers? This question represents much more than academic curiosity. In a normative sense, at stake are the fundamental underpinnings of the bulk of the last half-century’s models of choice under uncertainty. From a positive perspective, the ubiquitous use of benefit-cost analysis across government agencies renders the expected utility maximization paradigm literally the only game in town. In this study, we advance the literature by exploring CEO’s preferences over small probability, high loss lotteries. Using undergraduate students as our experimental control group, we find that both our CEO and student subject pools exhibit frequent and large departures …