We test whether probability weighting affects household portfolio choice in a representative
survey. On average, people display inverse-S-shaped probability weighting, overweighting …

This paper investigates the influence of the composite index of investor sentiment on the
time-varying long-term correlation of the US stock and bond markets based on the DCC …

We use account-level transaction data to examine trading styles and profitability in a leading
derivatives market. Approximately 66% of active retail investors predominantly hold simple …

This paper shows that securities with nonlinear payoff designs can foster household risk‐
taking. We demonstrate this effect by exploiting the introduction of capital guarantee …

Prize-linked savings (PLS) accounts, which allocate interest using lottery payments rather
than fixed interest, encourage savings by appealing to households' gambling preferences. I …

In this paper, we compare five popular systemic risk rankings, and apply principal
component analysis (PCA) model to provide a stable systemic risk ranking for the Chinese …

Recent complex financial products sold to households contradict the basic premise of
canonical innovation theories: Financial innovation benefits its adopters. In my 2006–2015 …

Purpose The purpose of this paper is to review and analyze the characteristics of the
literature related to financial innovation, because financial technology (fintech) has been …

Abstract The Hong Kong Stock Exchange adopted a standard closing call auction
mechanism in 2008 but suspended its operation ten months later due to suspicion of …

Recent studies have uncovered gambling-motivated trading activities in financial markets in
which investors seek lottery-type payoffs by using financial assets. Building on prospect …