The Social Science Research Network is an excellent source of academic papers regarding many different topics. Don't be misled by the Social Science name, as the site has many financial and investing related papers.
Over the next week or so, I will post a list of the top ten downloaded financial or investing related papers. Some of them are classics and some may be a little surprising. Most of them are free to download as well.
This article is the second most downloaded paper related to a financial or investing topic.
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
Michael C. Jensen and William H. Meckling - Downloaded 57,828 times
Abstract
"This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem."
Just to show how influential this paper is, it has been cited 2,180 times in other academic papers.
Number 3.
Saturday, June 20, 2009
Daily Link Orgy - June 20, 2009
Thursday, June 18, 2009
Daily Link Orgy - June 18, 2009
The Social Science Research Network is an excellent source of academic papers regarding many different topics. Don't be misled by the Social Science name, as the site has many financial and investing related papers. Over the next week or so, I will post a list of the top ten downloaded financial or investing related papers. Some of them are classics and some may be a little surprising. Most of them are free to download as well.
Market Efficiency, Long-Term Returns, and Behavioral Finance - By Eugene F. Fama - 71,665 downloads
Abstract
"Market efficiency survives the challenge from the literature on long-term return anomalies. Consistent with the market efficiency hypothesis that the anomalies are chance results, apparent over-reaction to information is about as common as under-reaction. And post-event continuation of pre-event abnormal returns is about as frequent as post-event reversal. Consistent with the market efficiency prediction that apparent anomalies can also be due to methodology, the anomalies are sensitive to the techniques used to measure them, and many disappear with reasonable changes in technique."
Number 2
Wednesday, June 17, 2009
Daily Link Orgy - June 17, 2009
Two more high profile individuals join the growing chorus of caution about the price of oil. James Mulva, the CEO of Conoco Phillips, and Nouriel Roubini, the economist.
I found a web site called Behavioural Finance through Simoleon Sense. This is a must read for any investors so they can learn to think better when investing.
Interesting article about EnCana, a Canadian Energy company deciding to cut its natural gas production by "a couple hundred million cubic feet per day in Canada, and a couple hundred million cubic feet in the U.S." The company's total gas production is 3.8 billion cubic feet per day. The company said its production in the Rocky Mountains was cut particularly hard due to oversupply in that region.
Monday, June 15, 2009
Weekly Link Orgy
So it turns out that the U.S. Treasury is actually earning a return on its investment in Citigroup in excess of the return on the S & P 500. I have said for months that the Capital Purchase Program was not a "bailout" as the media called it. The government should keep the warrants it received and the taxpayer will get a huge return down the road.
An interesting article from Reason that details the ten most absurd cover stories from Time Magazine over the last forty years.
A couple of interesting video sites with presentations applicable to investing that you should monitor for updates. These include FORA.tv and TED.
Another video source is from the The Heilbrunn Center for Graham & Dodd Investing, which has recordings of lectures devoted to Value Investing.
