Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The parables, premium puzzles, and the CAPM

The parables, premium puzzles, and the CAPM Purpose – The purpose of this paper is to ascertain whether religions parables are relevant to finance. Design/methodology/approach – In the Gospel, one may find parallels to the capital asset pricing model in the context of the parables of the kingdom of God. For instance, the duality in the parables is particularly analogous to the gain – loss decision making in the practice and theory of finance. Moreover, several parables giving insight into investor reactions may help explain the premium puzzles in asset pricing. Findings – Based on a thorough analysis, one can see that the parables contribute to finance practice and education. Originality/value – This study is the first attempt to link parables in the Gospel of Matthew to finance theories. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Finance Emerald Publishing

The parables, premium puzzles, and the CAPM

Managerial Finance , Volume 32 (10): 10 – Oct 1, 2006

Loading next page...
 
/lp/emerald-publishing/the-parables-premium-puzzles-and-the-capm-Eqd9msHPsO

References (22)

Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0307-4358
DOI
10.1108/03074350710688288
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to ascertain whether religions parables are relevant to finance. Design/methodology/approach – In the Gospel, one may find parallels to the capital asset pricing model in the context of the parables of the kingdom of God. For instance, the duality in the parables is particularly analogous to the gain – loss decision making in the practice and theory of finance. Moreover, several parables giving insight into investor reactions may help explain the premium puzzles in asset pricing. Findings – Based on a thorough analysis, one can see that the parables contribute to finance practice and education. Originality/value – This study is the first attempt to link parables in the Gospel of Matthew to finance theories.

Journal

Managerial FinanceEmerald Publishing

Published: Oct 1, 2006

Keywords: Capital asset pricing model; Religion; Finance

There are no references for this article.