Behavioral rationality in finance: the case of dividends
Article Abstract:
In the debate between rationalist and behaviorist economics, one area in which rationalism seems unable to account for anomalies is the supply and demand of dividends. However, a review of empirical data related to dividends shows that the supposed anomalies related to dividends can be traced to misinterpretations of the models and unrealistic expectations of what models can accomplish. Behavioral factors are not seen as crucial adjuncts to the financial model in comparative applications.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
Rational choice in experimental markets
Article Abstract:
The theory of rational behavior and choice can be used to establish preference parameters in experiments, to help explain phenomena such as bidding and speculation, to create models of results that would otherwise be incomprehensible, and as a problem solving tool in the design of new institutions. Although the theory cannot be confirmed when tested, no alternative theory has replaced the theory of rational individual choice because it is so useful.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Discourse and collaboration: The role of conversations and collective identity. The Temporal Dynamics Of Institutionalization
- Abstracts: Approximating the criticality indices of the activities in PERT networks. Approximating the Criticality Indices of the Activities in PERT Networks
- Abstracts: A meta-analysis of the effects of organizational behavior modification on task performance, 1975-95. Organizational commitment: a comparison of American, Japanese, and Korean employees
- Abstracts: Communication with employees following a merger: a longitudinal field experiment. Group approaches for improving strategic decision making: a comparative analysis of dialectical inquiry, devil's advocacy, and consensus
- Abstracts: Corporate restructuring: governance and control limits of the internal capital market. Towards reconciliation of market performance measures to strategic management research