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Laboratory experiments in corporate and investment finance: a survey
Author(s) -
Cadsby C. Bram,
Maynes Elizabeth
Publication year - 1998
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199806/08)19:4/5<277::aid-mde891>3.0.co;2-3
Subject(s) - dividend , corporate finance , agency (philosophy) , capital asset pricing model , financial economics , asset (computer security) , investment (military) , principal–agent problem , finance , economics , field (mathematics) , behavioral economics , information asymmetry , investment decisions , business , actuarial science , corporate governance , political science , sociology , social science , computer security , mathematics , politics , computer science , pure mathematics , law
In this paper the small but growing field of experimental Corporate and Investment Finance is reviewed. Excluded is the large and influential experimental asset market literature. Topics covered include experimental examination of agency problems, the interaction of risk and information choices, laboratory tests of asset pricing theories, experimental examination of financing and dividend decisions in the presence of asymmetric information between managers and investors and tests of game theoretic models of corporate takeovers. In general, studies that allow interactions among participants are more successful at corroborating Finance theories, emphasizing the importance of markets for communicating information among participants. © 1998 John Wiley & Sons, Ltd.