Editorial

Citation

Burton, B. (2010), "Editorial", Qualitative Research in Financial Markets, Vol. 2 No. 2. https://doi.org/10.1108/qrfm.2010.40702baa.001

Editorial

Article Type: Editorial From: Qualitative Research in Financial Markets, Volume 2, Issue 2

Welcome to the second issue of Qualitative Research in Financial Markets (QRFM) for 2010. This is my first chance to congratulate all those involved with the behavioural finance conference at Cass Business School in December of last year; the event was a great success, as was the special issue of this journal (issue 1 of 2010) based thereon. Many people worked hard to make the conference happen, but particularly Paul Hamalainen, Gudrun Muradoglu and William Forbes whose efforts ensured its success and encouraged high-quality paper submissions and presentations. On a related note, I am delighted to say that Werner DeBondt has contributed a fascinating piece that develops the arguments made in his plenary talk at the Cass event regarding the nature, causes and impact of the financial crisis, as well as pointing to specific reforms that might help rebuild the financial system; this paper will appear in the next issue of the journal.

This issue contains a range of articles that again illustrate the ability of qualitative research to shed light on substantive theoretical and practical issues pertaining to modern financial markets. The first paper in the current issue, “Financial distress resolution in China – two case studies”, by Amy Kam, David Citron and Gulnur Muradoglu, provides in-depth analyses of the distress resolution processes in China. The paper provides extensive novel evidence about the on-going influence of state-ownership and other national contextual factors that persist despite more general moves towards market liberalisation. In particular, in a market where bankruptcy law and regulation is still embryonic, assets often appear to be sold off without any funds being received in return, while broader social considerations are shown to continue to play a role in the decision-making process. The second paper, “Evidence on Irish financial analysts’ and fund managers’ views about dividends” by Thomas McCluskey, Aoife Broderick, Amanda Boyle, Bruce Burton and David Power, reports the findings of interviews with major investors and analysts regarding dividend policy in the Irish Republic. Pointing to a relative lack of focus in prior research on investor (relative to company) opinions on the issue, the authors suggest that whilst broad agreement between managers and owners appears to exist, there are several areas – notably relating to dividend cuts and buybacks – where perceptions differ markedly. The third paper, “Toward a theory of behavioral finance: implications from the natural sciences” by Robert A. Olsen, explores the link between hypotheses employed in the natural sciences and the central tenets of the developing behavioural finance paradigm. The paper concludes on an optimistic note by pointing to specific ways in which behavioural finance can draw on perspectives from broader scientific thinking and develop the foundations of a robust paradigmatical framework.

This issue concludes with a detailed and insightful review of William Forbes’ newly-published book Behavioural Finance by David Power. I would like to thank David Power for agreeing to provide this and I would of course, be delighted to receive any other reviews of works in the broad area of QRFM’s remit. More generally, I would again like to thank everyone involved with the journal, including Charlotte, Simon and the team at Emerald, as well as paper reviewers and members of the editorial board for their tireless efforts in supporting the journal and ensuring its success.

Bruce Burton