Luca Piras - Academia.edu (original) (raw)

Papers by Luca Piras

Journal of Governance and Regulation, 2012

This paper investigates one of the main sources of financial markets’ public information: financi... more This paper investigates one of the main sources of financial markets’ public information: financial analysts’ reports. We analyze reports on S&P 500 index through a multidisciplinary approach integrating behavioral finance with linguistic analysis to understand how financial phenomena reflect in or are deviated by language, i.e. whether financial and linguistic trends follow the same patterns, boosting each other, or diverge. In the latter, language could conceal financial events, mitigating analysts’ feelings and misleading investors. Therefore, we attempt to identify behavioral biases (mainly represented by cognitive dissonances) present in analysts’ reports. In doing so, we try to understand whether analysts try to hide the perception of negative price-sensitive events or not, eventually anticipating and controlling the market “mood”. This study focuses on how analysts use linguistic strategies in order to minimize their risk of issuing wrong advice. Our preliminary results show ...

Journal of Governance and Regulation, 2019

Academic literature on impact finance has not yet covered all aspects of the topic, nor has signi... more Academic literature on impact finance has not yet covered all aspects of the topic, nor has significantly contributed, so far, to solve several relevant problems arising from the field. Defining the metrics and measurement models suitable to assess impact is probably, among them, the most important one. Practitioners seem willing to exploit the potential value and, although useful heuristics and practical solutions have been found, no satisfactory and widely accepted valuation model is available. The present paper tries to summarize the state of the art, through the analysis of the available literature and tries to address some possible development in future research. The underlying idea is that the field is still very new, on one side, and extremely diverse in its manifestation, therefore no traditional theory fully applies to it. At the same time, the research on the topic still relays on practitioners’ effort, rather than on academia, a gap that ought to be filled. The paper conc...

Corporate Ownership and Control, 2013

The aim of this paper is to use behavioral finance to explain the factors that brought Barclays P... more The aim of this paper is to use behavioral finance to explain the factors that brought Barclays Plc. to face a £290 million fine (about $440 million), having deliberately tried to manipulate the LIBOR (London Interbank Offered Rate). This sums to the £59.5 million fined by the British Financial Services Authority (FSA) – the highest fine ever imposed by this organization – and respectively £102 million and £128 million by the US Department of Justice and by the Commodity Futures Trading Commission (CFTC). We analyze the reports issued by the U.S. and the British regulatory agencies, and those of financial analysts. Even though the focus of analysis are Barclays’ actions, we compare them with what other market participants did at the time of the analyzed events, to offer a comprehensive look at the financial industry and its dominant culture. In particular, after describing LIBOR rate determination methodology and the behavior of Barclays personnel when violations occurred, we presen...

Journal of Governance and Regulation, 2012

The aim of this research is to draw a theoretical line to connect on a common conceptual base, be... more The aim of this research is to draw a theoretical line to connect on a common conceptual base, behavioural fi-nance with what is internationally known as Modern Finance. The debate often involves discussions about the prevalence of rationality over irrationality. This paper will address mainly two questions: as an economist, should I propend for traditional or for behavioural finance? And, perhaps more important, are they in opposition to each other? Linking the principles upon which the traditional theory of finance is based to behavioural finance appears also to be useful to better understand recent global turmoil in the world financial system. In finding such links, behavioural finance studies will help on driving research to define market models much closer to reality than they are today. Thus literature recognition will be carried out, starting from the most important contribution to fundamental analysis, value theory, going through modern portfolio theory and efficient market ...

Journal of Governance and Regulation, 2012

This paper investigates one of the main sources of financial markets’ public information: financi... more This paper investigates one of the main sources of financial markets’ public information: financial analysts’ reports. We analyze reports on S&P 500 index through a multidisciplinary approach integrating behavioral finance with linguistic analysis to understand how financial phenomena reflect in or are deviated by language, i.e. whether financial and linguistic trends follow the same patterns, boosting each other, or diverge. In the latter, language could conceal financial events, mitigating analysts’ feelings and misleading investors. Therefore, we attempt to identify behavioral biases (mainly represented by cognitive dissonances) present in analysts’ reports. In doing so, we try to understand whether analysts try to hide the perception of negative price-sensitive events or not, eventually anticipating and controlling the market “mood”. This study focuses on how analysts use linguistic strategies in order to minimize their risk of issuing wrong advice. Our preliminary results show ...

Journal of Governance and Regulation, 2019

Academic literature on impact finance has not yet covered all aspects of the topic, nor has signi... more Academic literature on impact finance has not yet covered all aspects of the topic, nor has significantly contributed, so far, to solve several relevant problems arising from the field. Defining the metrics and measurement models suitable to assess impact is probably, among them, the most important one. Practitioners seem willing to exploit the potential value and, although useful heuristics and practical solutions have been found, no satisfactory and widely accepted valuation model is available. The present paper tries to summarize the state of the art, through the analysis of the available literature and tries to address some possible development in future research. The underlying idea is that the field is still very new, on one side, and extremely diverse in its manifestation, therefore no traditional theory fully applies to it. At the same time, the research on the topic still relays on practitioners’ effort, rather than on academia, a gap that ought to be filled. The paper conc...

Corporate Ownership and Control, 2013

The aim of this paper is to use behavioral finance to explain the factors that brought Barclays P... more The aim of this paper is to use behavioral finance to explain the factors that brought Barclays Plc. to face a £290 million fine (about $440 million), having deliberately tried to manipulate the LIBOR (London Interbank Offered Rate). This sums to the £59.5 million fined by the British Financial Services Authority (FSA) – the highest fine ever imposed by this organization – and respectively £102 million and £128 million by the US Department of Justice and by the Commodity Futures Trading Commission (CFTC). We analyze the reports issued by the U.S. and the British regulatory agencies, and those of financial analysts. Even though the focus of analysis are Barclays’ actions, we compare them with what other market participants did at the time of the analyzed events, to offer a comprehensive look at the financial industry and its dominant culture. In particular, after describing LIBOR rate determination methodology and the behavior of Barclays personnel when violations occurred, we presen...

Journal of Governance and Regulation, 2012

The aim of this research is to draw a theoretical line to connect on a common conceptual base, be... more The aim of this research is to draw a theoretical line to connect on a common conceptual base, behavioural fi-nance with what is internationally known as Modern Finance. The debate often involves discussions about the prevalence of rationality over irrationality. This paper will address mainly two questions: as an economist, should I propend for traditional or for behavioural finance? And, perhaps more important, are they in opposition to each other? Linking the principles upon which the traditional theory of finance is based to behavioural finance appears also to be useful to better understand recent global turmoil in the world financial system. In finding such links, behavioural finance studies will help on driving research to define market models much closer to reality than they are today. Thus literature recognition will be carried out, starting from the most important contribution to fundamental analysis, value theory, going through modern portfolio theory and efficient market ...