Mean-Variance Utility Functions and the Demand for Risky Assets: An Empirical Analysis Using Flexible Functional Forms
Article Abstract:
In a mean-variance portfolio framework, a model of financial asset demand is developed by household sector. Using the Box-Coy Utility Function, proof is derived that the best fit comes from the Leontief Function. Signs consistent with theory and intuition are derived. Bias may arise from the use of aggregate data.
Publication Name: Journal of Financial and Quantitative Analysis
Subject: Business
ISSN: 0022-1090
Year: 1983
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Benesh, G.A. A Reexamination of the Empirical Relationship between Investment and Financial Decisions
Article Abstract:
The interrelationship of financing and investment decisions is examined. Under perfect capital markets these decisions are independent. When market imperfections exist financial decisions impact on investment decisions leading to jointly determined decisions.
Publication Name: Journal of Financial and Quantitative Analysis
Subject: Business
ISSN: 0022-1090
Year: 1983
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An Empirical Test of the Redistribution Effect in Pure Exchange Mergers
Article Abstract:
The effect of pure stock exchange mergers on the values of debt and equity is examined. Holders of risky debt show significant gains from such a merger. Positive synergy is achieved by the bidding firms who have publicly traded bonds.
Publication Name: Journal of Financial and Quantitative Analysis
Subject: Business
ISSN: 0022-1090
Year: 1983
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