J.P. Morgan & Co.

About: J.P. Morgan & Co. is a based out in . It is known for research contribution in the topics: Portfolio & Implied volatility. The organization has 328 authors who have published 436 publications receiving 14291 citations.

Securities trading of concepts (STOC)

Abstract: Identifying winning new product concepts can be a challenging process that requires insight into private consumer preferences. To measure consumer preferences for new product concepts, the authors apply a “securities trading of concepts,” or STOC, approach, in which new product concepts are traded as financial securities. The authors apply this method because market prices are known to efficiently collect and aggregate private information regarding the economic value of goods, services, and firms, particularly when trading financial securities. This research compares the STOC approach against stated-choice, conjoint, constant-sum, and longitudinal revealed-preference data. The authors also place STOC in the context of previous research on prediction markets and experimental economics. Across multiple product categories, the authors test whether STOC (1) is more cost efficient than other methods, (2) passes validity tests, (3) measures expectations of others, and (4) reveals individual preferences...

Closed-End Funds: A Survey

Abstract: This survey reviews the evolving literature on closed-end fund discounts. Many studies have attempted to explain the existence and the behavior of the discount to net asset value, emphasizing biases in the calculation of NAV, agency costs, tax-timing options and market segmentation. None has been able to provide a full explanation. As a result, some researchers have found it necessary to resort to models of limited rationality. This gives rise to potential opportuniteis for exploiting the discount. We summarize the findings from some 70 studies of closed-end funds, and present directions for future research.

Shedding light on microfinance equity valuation : past and present

Abstract: Micro-finance institutions (MFIs) will certainly be affected by the financial crisis ricocheting across the globe, but the authors believe that the sector is fundamentally sound. Larger institutions, especially those with diversified funding sources, such as retail deposits, are best positioned to manage the effects of economic and financial contraction. Valuations may change, but the authors believe the long-term outlook for equity investment in microfinance is positive. Private equity valuations for MFIs have varied widely over the past few years. Investors should not value MFIs the same way they value traditional banks. The authors highlight five characteristics that differentiate MFIs from traditional banks, and justify a slightly different valuation approach: a double bottom line that aims for social and financial returns, excellent asset quality, high net interest margins (NIMs), high operating costs, and longer term funding available from developmental investors.