PERSONAL BANKRUPTCY COSTS: THEIR RELEVANCE AND SOMES ESTIMATES
(pp. 77-96) DOWNLOAD FULL-TEXT ARTICLE
James S. Ang, Ali M. Fatemi

ABSTRACT
The paper argues that there is a need for the formal treatment of personal bankruptcy costs in the finance literature. The need arises out of the relevance of such costs to both corporate and personal financing decisions. We show that (a) personal bankruptcy costs (like personal taxes) are relevant to the corporate capital structure problem and that (b) differential bankruptcy costs across corporations and individuals can result in a clientele model of individual investment-borrowing decisions which could lead to institutional arrangements designed to minimize combined bankruptcy costs. Further, we develop a theory of personal bankruptcy and a set of testable hypothesis with regard to their costs. Some preliminary estimates of personal bankruptcy costs are reported which suggest that they are higher than corporate bankruptcy costs. There is also some evidence of economics of scale in personal bankruptcy costs.

AN APPLICATION OF FUZZY SET THEORY TO THE INDIVIDUAL INVESTOR PROBLEM
(pp. 97-107) DOWNLOAD FULL-TEXT ARTICLE
Manuel Tarrazo

ABSTRACT
This study reviews the problem of the individual investor and applies to it a methodology based on fuzzy sets and the theory of possibility. The investment decision is characterized by uncertainty, imprecision and complexity, which lessen the effectiveness of conventional calculus and probability tools. In contrast, fuzzy set theory and its modeling language provide objects of analysis and algebra that are well suited to this problem. New concepts such as "fuzzy portfolio weights" are introduced. The result of our research is a qualitative, general, and practical model for individual investors’ decision making, which is based on Smith’s (1974) asset-mix model.

THE USE OF PROFESSIONAL DESIGNATIONS IN THE REAL ESTATE INDUSTRY
(pp. 109-124) DOWNLOAD FULL-TEXT ARTICLE
Susan Logan Nelson, Theron R. Nelson

ABSTRACT
A series of surveys investigates the recognition by consumers of professional designations in a variety of financial services fields, but with an emphasis on the real estate industry. The results from the 1991, 1994 and 1996 surveys are consistent in revealing a general lack of recognition by consumers of professional designations, with the notable exception of the CPA. The CFP© and CLU also fared somewhat better than the real estate designations examined both in terms of consumer recognition and perceived competence of those holding the designation. Consumers, however, exhibited a generally strong desire for dealing with professionally designated individuals when making financial decisions.

AN OVERVIEW OF FINANCIAL SERVICES RESOURCES ON THE INTERNET
(pp. 125-140) DOWNLOAD FULL-TEXT ARTICLE
Brian Grinder

ABSTRACT
Individual financial decision making is a process requiring a great deal of information, most of which can be found on the Internet if one knows where to look. This paper is a guide to recent financial service developments on the Internet that allow academics, students, professionals, and consumers to find information, interact with others, and conduct financial transactions online. It also offers an extensive list of financial service Internet sites, and provides a glimpse into the future of financial services on the Internet.

CONVERSIONS OF MUTUAL SAVINGS INSTITUTIONS: DO INITIAL RETURNS FROM THESE IPOS PROVIDE INVESTORS WITH WINDFALL PROFITS?
(pp. 141-150) DOWNLOAD FULL-TEXT ARTICLE
Julie A.B. Cagle, Gary E. Porter

ABSTRACT
We examine initial returns of fully underwritten IPOs of converting thrifts for evidence that managers and depositors of conversion-related offers earn significantly greater returns than investors in IPOs of other financial institutions. Regulators have suggested that new guidelines for conversion from a mutual to a stock thrift are designed to curb "windfall profits" earned by insiders investing in conversion-related IPOs. While there are reports of average initial returns of more than 20% for conversion-related IPOs, our results suggest that investors earn average initial returns of about 7%, which is not significantly different than returns from IPOs of other thrifts and commercial banks.