The Equity Premium Puzzle, Ambiguity Aversion, and Institutional Quality /

With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent varia...

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Автор: Mirakhor, Abbas
Інші автори: Erbas, S.
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2007.
Серія:IMF Working Papers; Working Paper ; No. 2007/230
Онлайн доступ:Full text available on IMF
Опис
Резюме:With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant, which indicates that a large part of equity premium may reflect investor aversion to ambiguities resulting from institutional weaknesses.
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Фізичний опис:1 online resource (58 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students