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May 2015 Dear Financial Decisions Readers: Welcome
to the Spring 2015 issue of Financial
Decisions. For this issue I have selected four excellent
manuscripts that I hope that you will find beneficial. ·
The
first manuscript, “Explaining Bond Spreads Via
Default Risk, Taxes, Rating Transition and Liquidity” develops a
semi-structural framework of bond pricing that incorporates default risk,
taxes, and bond rating transition. ·
The
second manuscript, “Empirical Evidence on Information Theory and the Favorite
Longshot Bias” uses pari-mutuel betting to provides a fertile testing ground
for theories of how risk is evaluated in the market. ·
The
third manuscript, “State Usury Laws versus Payday Lending” studies
the friction that exists between usury laws and attempts to regulate payday
lending. ·
The
final manuscript, “Financial Crisis and Dividends” re-examines Michael Rozeff’s study of 1982 on variables affecting dividend
payout ratios using data surrounding the Great Recession of 2008-2009. The
research suggests that his findings do not necessarily translate into periods
of financial distress. I
sincerely hope that you find the manuscripts published in Financial Decisions
interesting and useful. I also hope that you will continue to submit your
research to us for evaluation, and look forward to many outstanding
manuscripts. Sincerely, |
