Do friends provide good financial advice that helps inexperienced investors earn a higher return in the market? Or do friends provide bad advice that leads to excessive investments in individual stocks and asset bubbles? In a new study, we provide evidence that new investors copy the portfolios of their friends and that the advice was,… Read More »
In my article Tribes and Temperaments: Two Underappreciated Determinants of Market Actor Behavior, Motivations and Beliefs, prepared for a volume on Hidden Fallacies in Corporate Law and Financial Regulation, I make two arguments, one narrow and one very broad. The narrow argument is that law and economics does not take tribes or temperaments, as I define them,… Read More »
Researchers, regulators, and practitioners have long-standing concerns about the negative effects of non-audit services (NAS) on audit quality. On the one hand, payments for NAS by client firms can impair auditor independence and motivate auditors to ignore client deficiencies. On the other hand, knowledge transfer across audit and NAS employees at the same firm can… Read More »
Introduction Special-Purpose Acquisition Companies (SPACs) have been widely discussed over the past year. According to the U.S. Securities and Exchange Commission (SEC), a SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set time frame. A SPAC has 24 months after the initial public offering (IPO)… Read More »
Last month, I published an op-ed in the Wall Street Journal that argued for a ban on cryptocurrency in order to combat the ransomware plague that is devastating our economy and businesses across the country. My premise is simple. Cryptocurrency has been around for over a decade; that is more than enough time for us to take… Read More »
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