Three Essays on Financial Economics

Kay Sun Park

Research output: Book/ReportPh.D. thesisResearch

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Abstract

Practitioners in finance have been trying to either maximize their fortunes or minimize any unlucky outcomes;say, Beat the market. The uncertainty is always something to fear or to overcome in financial market in order to beat the market. The price of assets seems unpredictable in a short-time interval, though academics consider market price would stay at equilibrium in the long-run, as reflecting fundamentals in the end. As “Efficiency of Financial Market” says; price of assets reveals all relevant information. The continuous-time random walk is successfully taken as close as tracking down the asset price movements. Moreover, a regime-switching between good versus bad state abruptly occurs over the business cycle (or the financial cycle). Hence, two key theoretical devices used to model risk in finance are first, to acknowledge that we see the movements of asset price micmic a random walk in a continuous manner and second, to acknowledge that we observe the state of a world seems to switch from one to another regime. In this thesis, I investigate how time variation in risks and uncertainty affects firm’s funding decisions as well as market’s aggregates movements.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherCopenhagen Business School [Phd]
Number of pages126
ISBN (Print)9788793483729
ISBN (Electronic)9788793483736
Publication statusPublished - 2016
SeriesPhD series
Number54.2016
ISSN0906-6934

Cite this

Park, K. S. (2016). Three Essays on Financial Economics. Frederiksberg: Copenhagen Business School [Phd]. PhD series, No. 54.2016
Park, Kay Sun. / Three Essays on Financial Economics. Frederiksberg : Copenhagen Business School [Phd], 2016. 126 p. (PhD series; No. 54.2016).
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Park, KS 2016, Three Essays on Financial Economics. PhD series, no. 54.2016, Copenhagen Business School [Phd], Frederiksberg.

Three Essays on Financial Economics. / Park, Kay Sun.

Frederiksberg : Copenhagen Business School [Phd], 2016. 126 p. (PhD series; No. 54.2016).

Research output: Book/ReportPh.D. thesisResearch

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Park KS. Three Essays on Financial Economics. Frederiksberg: Copenhagen Business School [Phd], 2016. 126 p. (PhD series; No. 54.2016).