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BACKGROUND AND OBJECTIVES: In order to create a secondary life insurance market in which life insurance policy holders can easily sell their insurance policies, it is necessary to identify and investigate the legal bases and effects of life insurance policy assignments so as to set up the relevant rules governing this market. In this regard, this research seeks to examine the legal challenges of transferring life insurance policies from one person to another. METHODS: Legal analysis is done using legal texts, including jurisprudence, legal books, and domestic and foreign published articles. Based on this, the working method in this article will be library, analytical, and descriptive one. In this way, the juridical and legal foundations of life insurance transfer are examined first, and then the nature of the transfer contract is studied, and finally, the effects and rulings resulting from this transfer are analyzed accordingly. FINDINGS: Regarding the rules governing life insurance in Iran’s legal system, unlike many legal systems in the world, not many laws have been approved and this part has been neglected by the legislator. This is the basis for the emergence of disagreements regarding the rulings related to this insurance. Most of the provisions related to the life insurance policy in Iran should be extracted from the general conditions of the life insurance policy and the law is silent about most of the cases. CONCLUSION: This article shows that it is possible to transfer a life insurance policy and extract rulings governing this transfer based on the current laws and regulations in Iran’s legal system using general regulations to a large extent. Based on the principle of freedom of contract transfer, it is allowed to transfer any contract that is not based on an individual. The effects of this transition are discussed in detail in the article. [ABSTRACT FROM AUTHOR]

The article presents the results of a synthesis of interpretive research undertaken to examine the benefits for consumers and to assess the development potential of the insurance market thanks to the functioning of the secondary life insurance market. The solutions adopted worldwide regarding introducing insurance companies› obligation to inform about the existence of the secondary life insurance market were analyzed as a potential model to be used in Poland. A study of the literature and legal regulations regarding the functioning of the life insurance market was carried out as an analysis of legal acts in force in the world and in Poland, as well as an examination of the regulations and mechanisms for selling life insurance policies on the secondary market around the world. It has been shown that life insurance policyholders are not aware of the existence or possibility of a secondary market. The lack of an active secondary market means fewer benefits for consumers from the functioning of the insurance market, and the competitive potential of the entire insurance market becomes limited.

With time, the law and economics of insurance have advanced from considering it solely as a security measure to recognising it as an asset class. Numerous companies now offer loans against these life insurance policies, accepting the 'property' nature of life insurance behind the veil (Doherty & Singer, 2003; Mancini & Murphy, 2012; Mazonas, Stallard & Graham, 2011). Recently the world witnessed sudden deaths at large scale during the COVID-19 pandemic. A study indicates that financial crisis is a major reason of acute stress and instability in adults' lives (Karim & Shetu, 2023; PK, TK & PK 2021) In such crisis situations, the secondary market assignment of life insurance policies could have been a boon for any person facing financial difficulty or not having a living family member/nominee. The market for life settlements flourished during HIVAIDS crisis in the USA and has shown steady growth since then in various jurisdictions of the world. However, in India, the doors for secondary market trading were closed in 2015 through a statutory amendment to the Insurance Act, 1938 presently in force in India. Contemporary academia is divided on necessity of the requirement of insurable interest on the secondary market assignment of insurance policies. Other legal issues such as moral hazard, and ethics of trading on life are debatable as well. The preliminary investigation revealed a scarcity of papers discussing these legal considerations around life settlements. However, among the top 10 countries in the global life insurance ranking, five are emerging markets including India having immense potential for life settlements market (Anon, 2021). Consequently, the researcher conducted a scientific SLR using PRISMA Method, along with reviewing selected papers in full, focusing on the legal and related economic considerations, to produce valuable insights for the emerging market. This paper presents the sole effort to pursue SLR on legal issues and put them in a place with the aim to ignite the discussion on legal considerations of life settlements. Importantly, this paper considers India as an emerging market for reference and the USA as a benchmark for established market. This paper adopted a theoretical approach to fulfill the need for legal analysis complimented with secondary data analysis. [ABSTRACT FROM AUTHOR]

We explore two recent phenomena in equity crowdfunding platforms: the development of dedicated secondary markets and the crucial role of institutional investors (lead investors in terms of pledge). First, we propose a theoretical model in which crowd and lead investors choose to finance campaigns posted by entrepreneurial firms that are heterogeneous with respect to their target and long-term return. We suppose that lead investors make huge pledges in the highest return campaigns but bear the cost of illiquidity whereas the crowd invests in all campaigns. The platform sets up a secondary market to enhance asset liquidity, but all entrepreneurial firms with successful campaign are not automatically listed. If they are listed, second-hand transactions send signals on the chance of success of the funded campaigns. Theoretical results show that increasing the number of lead investors or their pledge improves fundraising but always reduces access to the secondary market for some entrepreneurial firms. If the lead investors' cost of illiquidity is particularly low, it may even decrease the share of entrepreneurial firms that have access to the secondary market. We then test these predictions using data scraped from one of the most important ECF platforms that covers the period November 2018–October 2020. We empirically show that the number of lead investors and their pledge are positively correlated with the success of the fundraising campaign and negatively correlated with the access the entrepreneurial firms have to the secondary market. These results suggest that the illiquidity of shares is not of first importance for lead investors, who tend to make long-term commitments to crowdfunding campaigns. The implementation of secondary market is thus a useful tool to attract crowd investors but should be finely monitored by the platform to retain lead investors. Plain English Summary: The development of secondary markets and the increasing role of institutional investors (lead investors in terms of pledge) are recent phenomena in the world of equity crowdfunding platforms. We question why all funded entrepreneurial firms are not automatically listed when secondary markets open. Second-hand transactions offer a valuable exit option for investors but may send perturbing signals through too much price share volatility and possible loss of confidence from entrepreneurs and investors. The role of the platform is then to select funded campaigns authorized to be listed on its secondary market. We show both theoretically and empirically that increasing the number of lead investors or their pledge improves fundraising but surprisingly reduces access to the secondary market for some entrepreneurial firms. This suggests that the illiquidity of shares does not really matter for lead investors, who tend to make long-term commitments. In conclusion, our study provides practical implications for equity crowdfunding platforms that seek to organize the opening of secondary markets. [ABSTRACT FROM AUTHOR]

The weak-form of market efficiency states that stock price reflects all the historical price data thus abnormal return cannot be earned based on historical price. Many studies observed a pattern in generating returns over the week, where Fridays have been documented as a day providing significantly higher returns while Mondays as a day providing the lowest or negative return. The presence of a such pattern in the return violates the efficient market hypothesis in the weak form which provide a golden opportunity for smart and knowledgeable investors to exploit such a pattern and generate an abnormal return. This paper tries to critically review and synthesize the relevant research in the field of the days of the week and weekend effect by using a systematic literature review approach, from 1973 to 2023. This study concluded that the direction and magnitude of the days-of-the-week and weekend effects, for different stock markets across different periods are not the same, it may be due to different institutional arrangements, and religious and cultural beliefs.

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Purpose: This paper aims to measure the trade price impact of a recent regulatory disclosure intervention in municipal securities secondary markets, which required broker-dealers to disclose securities trading information on a near-real-time and continuing basis. Design/methodology/approach: The author analyzes trade price outcomes in the preintervention and postintervention regimes using a suite of time series estimations that give heteroskedasticity-robust standard errors (Prais–Winsten and Cochrain–Orcutt), accommodate higher-order lag structure in the error term (autoregressive integrated moving average) and account for volatility clustering in the time series (generalized autoregressive conditional heteroskedasticity). Findings: Results show that regulatory disclosure intervention significantly improved trade price efficiency in municipal securities secondary markets as daily trade price differential and volatility both declined market-wide after the disclosure intervention. Research limitations/implications: The sample consists of trades in State of California general obligation bonds; therefore, empirical findings may not be generalizable to other states, local governments and different types of bonds. Practical implications: The findings highlight voluntary information disclosure as a practical and effective mechanism in disclosure regulation of municipal securities secondary markets. Originality/value: Only a small body of work exists that examines information disclosure regulation in municipal securities secondary markets; therefore, this paper expands knowledge on the topic and should provide renewed impetus for regulatory efforts aimed at improving the efficiency of municipal capital markets. [ABSTRACT FROM AUTHOR]

This study examines the effect of a secondary market with socially conscious consumers on a brand firm’s profitability. The existing literature on the introduction of a secondary market usually assumes a channel setting. In practice, however, brand firms begin introducing physical products to secondary markets with a consumer-to-consumer setting, which is not considered in existing theories. Therefore, we develop a two-period pricing model to investigate the effect of secondary markets with socially conscious consumers and conduct a sensitivity analysis to examine the impact of the main parameters on the equilibrium outcomes. Conventional wisdom suggests that the introduction of the consumer-to-consumer secondary market is always detrimental to suppliers of durable physical goods. However, we demonstrate that a brand firm may benefit from introducing the physical product secondary market if the consumers are socially conscious under certain conditions, which stands in contrast to the existing literature. Moreover, consumers always prefer the introduction of a secondary market; that is, a “win–win” outcome may be achieved. In summary, our findings provide useful implications regarding when managers should introduce a secondary market in case consumers are socially conscious. [ABSTRACT FROM AUTHOR]

‎In this article, fuzzy random variables are used to model interest rate uncertainty used in the calculation of whole life insurance premiums, and calculate the effect of this uncertainty on the price of life settlements. The fuzzy results obtained from deterministic and probabilistic pricing approaches have been compared with the results of the stochastic approach. Also, the results have been analyzed for Iran life table, which has been issued to insurance companies since 1400, and for France life table, which was previously used by insurance companies. In addition, since ‎5-year survival probability for each cancers in Iran was lower than in the United States, the probability adjustment coefficient for Iran was higher than that of the United States. In addition, the interval obtained for the fuzzy probability price and the stochastic price for both Iran and France life tables are close to each other. But in most cases, the fuzzy price obtained based on the deterministic approach has a significant distance from the stochastic and fuzzy probability approaches. Also, the findings of the research indicate that the price calculated using the fuzzy deterministic approach for Iran life table is higher than France life table. While the results for fuzzy probabilistic approach and stochastic approach are completely opposite. In the other words, the price calculated for the Iran life table is lower than the France life table. This difference comes from the fact that the adjustment coefficients for ‎these‎ life tables are calculated for each person separately from ‎related‎ life tables.

In this paper, the consequences of recognition of carbon emission allowances as financial instruments under the EU financial markets law including Directive 2014/65/EU of 15 May 2014 on markets in financial instruments (MiFID II) and the EU environmental law are analysed. We try to answer the question in what way the recognition of carbon emission allowances as financial instruments affected the functioning of the European Union Emission Trading Scheme (EU ETS). In particular, we ask whether it is beneficial or detrimental in terms of the environmental and economic effectiveness of the EU ETS. [ABSTRACT FROM AUTHOR]

In view of the phenomenon of price difference in the primary and secondary markets of the streetwear co-branded products, the price premium mechanism of the co-branded products in the primary and secondary markets is analyzed respectively through theoretical framework and data empirical evidence. It collected 356 co-branded products and transaction information of 8 main brands and 102 partner brands for empirical analysis. The results of correlation analysis and regression analysis show that there are differences in the price premium mechanism between the primary market and the secondary market. The primary market price is set by the brand considering the product cost, consumer demand and market competition, and the price premium is influenced by the partner brand luxury, the main brand awareness, the difference in brand type and the price of non-co-branded similar products. The secondary market price is a reflection of consumers' perception of the product value, and the price premium is influenced by the main brand awareness and the price of non-cobranded similar products, while the effects of partner brand luxury and brand type differences are not significant. This means that the "big money" co-branded strategy does not significantly improve the value of streetwear products, although it can improve product pricing. [ABSTRACT FROM AUTHOR]

The topic of the paper is the analysis of the situation in the secondary real estate market in Krakow from 2017 to 2020. The research was conducted based on data obtained from the register of real estate prices and values. The results of the research helped detect changes occurring in the indicated years; the number of transactions in the housing market in the city oscillated around the value of 4,000 for each year. The high demand for real estate was significantly disrupted by 2020 and the outbreak of the COVID-19 pandemic. Despite an almost 50% drop in the number of transactions and reduced interest from potential buyers, the price of 1m2 of residential space rose steadily. Thus, the pandemic only affected the number of transactions, while no deceleration of the rising trend was observed in terms of the average transaction price or the average price per square meter. [ABSTRACT FROM AUTHOR]

The secondary market in equity crowdfunding aims to facilitate Investors in trading their Micro, Small, and Medium Enterprises (MSMEs) shares to other Investors as an exit and entrance strategy for interested Investors. Therefore, the traded shares must be liquid, ensuring that the secondary market of equity crowdfunding operates fairly, orderly, and efficiently. However, implementing the secondary market in equity crowdfunding in Indonesia, introduced in 2018 by the Financial Services Authority (OJK), still leaves room for evaluation and improvement. This thesis first examines the organization of the secondary market in Indonesia, which lacks legal certainty for both the Organizer and Users. Secondly, it explores the regulations on the secondary market in equity-based Crowdfunding in the United States, which can be used as a reference to develop legal regulations in Indonesia, including the prohibition of share sales in the first year and the classification of equity-based Crowdfunding for startup companies and medium-sized enterprises. Thirdly, applying American laws in the Indonesian legal framework can provide greater financial stability for issuing companies and reduce the risk of bankruptcy for Investors in equity-based Crowdfunding. The research findings indicate that the management and philosophy of the secondary market in equity crowdfunding cannot be equated with a Stock Exchange. Preventive legal protection for Investors can be provided through guidelines issued by the OJK, such as auto-reject limits, standardized buying and selling mechanisms, trading hours, transaction fees collected by the Organizer, transparency of daily transaction summary data, and mechanisms for determining the fair share price in initial trading on the secondary market. There are criminal and administrative sanctions for repressive legal protection.

Objective: This article explains different approaches for pricing life settlements in the secondary market to adopt them for pricing the same product in Iran’s insurance industry.Methods: This is a quantitative study with a focus on life settlements pricing in Iran’s secondary market. It uses deterministic, probabilistic, and stochastic approaches. For this purpose, the Iranian life table, applicable since March 21, 2021, and the French life table, which was previously used by Iran’s insurance companies, were used to calculate the mortality and survival probabilities. Also, these probabilities were adjusted based on the insured's health status and lifestyle. Furthermore, the research findings were compared with the surrender value of the life insurance policy.Results: The results showed the insurance policy's surrender value to be lower than the price calculated based on the probabilistic and stochastic approaches. It was found to be higher than the price calculated based on the deterministic approach. Therefore, based on probabilistic and stochastic approaches, the exchange of life settlements in the secondary market will benefit the insured. In addition, the price of life insurance policies, based on deterministic and stochastic approaches using the Iranian life table, was lower than the French life table. This was even though the price of these life settlements using the probability approach for the Iranian life table was obtained more than the French life table. Therefore, using the Iranian life table in the pricing of life settlements, based on a probability approach, will benefit the policyholders, and based on a deterministic and stochastic approach; it will be detrimental to them. Furthermore, the life settlements price for Spain is higher than for Iran due to different assumptions.Conclusion: To increase the penetration of life insurance, insurance companies need to enter new fields, such as secondary markets. The life settlement in the secondary market means the sale of ownership or the transfer of benefits from the insured to the investor. In general, life settlement pricing requires the development of regulations to determine the necessary assumptions, such as the internal rate of return and the adjustment multiplier of the mortality probability.

We develop a model of private equity capturing two fundamental features of this market: the fund structure and illiquidity. A fund structure with sequential capital calls arises as an optimal solution to fund managers' (GPs) moral hazard problem but exposes investors (LPs) to illiquidity risk. Funds with more illiquidity-tolerant LPs realize higher returns, leading to different expected returns across both funds and LPs in equilibrium. GPs may inefficiently accelerate drawdowns to avoid default by LPs on capital commitments. With a secondary market for LP claims, differences in fund returns are attenuated but differences in LP returns remain. The model can rationalize several empirical findings on primary and secondary private equity markets. This paper was accepted by Bruno Biais, finance. Funding: V. Maurin thanks the Swedish House of Finance for financial support. P. Strömberg thanks the NASDAQ Nordic Foundation, Söderberg Professorship in Economics, and Swedish House of Finance for financial support. D. Robinson thanks the Bertil Danielsson Professorship and Erling Persson Professorship for financial support. Supplemental Material: The online appendices are available at https://doi.org/10.1287/mnsc.2022.4612. [ABSTRACT FROM AUTHOR]

Consumers can buy concert tickets from primary platforms (e.g., Ticketmaster) or from consumer-to-consumer resale platforms (e.g., StubHub). Recently, Ticketmaster has entered and been trying to control the resale market by prohibiting consumers from reselling on competing resale platforms. Several states in the United States have passed or are discussing laws requiring tickets to be transferrable on any resale sites, worrying that platform integration—Ticketmaster controlling both the primary and the resale platforms—will increase ticket service fees and harm musicians and consumers. This article establishes a game-theoretic framework and shows that the opposite can happen: platform integration can lower the service fees in both markets, alleviating double marginalization in the primary market and benefiting the musician and consumers. Moreover, with platform integration, the presence of a small number of scalpers can counterintuitively reduce the ticket price and benefit the musicians and consumers. In addition, platform competition in the resale market may harm consumers. This article further shows that these insights apply in other markets (e.g. used goods, peer-to-peer product-sharing markets) and provides suggestive empirical support for the theoretical results. [ABSTRACT FROM AUTHOR]

After-sales and aftermarkets are significant revenue streams for industrial companies. After-sales services are activities during warranty periods that include field technical assistance, spare parts distribution, customer care, and accessories sale. Aftermarket support involves secondary market transactions for additional products (e.g. accessories and add-ons) and product recovery processes. An awareness of the potentials of both concepts is evident by the extensive body of production and operations management (POM) publications that investigate the perspectives of both academia and practitioners. Yet, there is an absence of a systematic review to analyse research studies on after-sales and aftermarkets in a POM context. This article reviews the POM literature on after-sales services and aftermarket support. The review identifies and critically appraises 249 peer-reviewed articles published between 1970 and 2018. It examines the research clusters, investigated industry sectors, research methodologies, theories and contributions of studies. Using insights from the review process, the article also proposes theoretical foundations, sets a research agenda, and identifies optimisation problems for future after-sales and aftermarket studies. [ABSTRACT FROM AUTHOR]

The increasing attention to non-fungible tokens (NFTs) since 2021, and many reports of remarkable returns by traders of NFTs raise the question of the actual returns in the whole NFT market. We examine the returns of NFT resales using data of 2.12 million secondary market NFT trades on Ethereum's five largest marketplaces starting in June 2017 until December 2021 at the individual transaction level and trader level and control for transaction costs by implementing a linear regression model and nonparametric tests. We find that the majority of resales are in profit and a high concentration of profits at the trader level, with the top 10% of traders accounting for the majority of profits, and we identify differences in profits for the analyzed NFT categories. Our results show that experienced investors systematically outperform inexperienced investors, indicating information inefficiency in the NFT market, while we do not find clear evidence for the underperformance of more expensive NFTs compared to less expensive ones. Additionally, we find indications of the importance of pump-and-dump schemes on the level of returns. [ABSTRACT FROM AUTHOR]

447 Investors' individual reliance on misstated inside information as an element of causation in securities litigation has provoked criticism. Scholarship has long acknowledged that a reliance requirement is not justified as damage may occur without an investor's reliance on misstated inside information in the secondary market. This article analyses the reliance requirement in select European jurisdictions (the Netherlands, Germany, Sweden, Norway, Denmark, Finland, and the United Kingdom) and the United States. The article investigates whether a reliance requirement exists in the secondary market litigation regime in said jurisdictions and analyses whether a presumption of reliance exists to fulfil the reliance requirement. The article argues that most of the suggested solutions to resolve the reliance problem are not entirely satisfactory. An often-suggested presumption of reliance, while leavening the investors' burden of proof, keeps the reliance requirement in place. This article submits that proof of individual investors' reliance should not be required in secondary market inside information misstatement cases. Discarding the reliance requirement altogether makes any presumptions redundant as well. 448 [ABSTRACT FROM AUTHOR]

Objective: This article explains different approaches for pricing life settlements in the secondary market to adopt them for pricing the same product in Iran’s insurance industry. Methods: This is a quantitative study with a focus on life settlements pricing in Iran’s secondary market. It uses deterministic, probabilistic, and stochastic approaches. For this purpose, the Iranian life table, applicable since March 21, 2021, and the French life table, which was previously used by Iran’s insurance companies, were used to calculate the mortality and survival probabilities. Also, these probabilities were adjusted based on the insured's health status and lifestyle. Furthermore, the research findings were compared with the surrender value of the life insurance policy. Results: The results showed the insurance policy's surrender value to be lower than the price calculated based on the probabilistic and stochastic approaches. It was found to be higher than the price calculated based on the deterministic approach. Therefore, based on probabilistic and stochastic approaches, the exchange of life settlements in the secondary market will benefit the insured. In addition, the price of life insurance policies, based on deterministic and stochastic approaches using the Iranian life table, was lower than the French life table. This was even though the price of these life settlements using the probability approach for the Iranian life table was obtained more than the French life table. Therefore, using the Iranian life table in the pricing of life settlements, based on a probability approach, will benefit the policyholders, and based on a deterministic and stochastic approach; it will be detrimental to them. Furthermore, the life settlements price for Spain is higher than for Iran due to different assumptions. Conclusion: To increase the penetration of life insurance, insurance companies need to enter new fields, such as secondary markets. The life settlement in the secondary market means the sale of ownership or the transfer of benefits from the insured to the investor. In general, life settlement pricing requires the development of regulations to determine the necessary assumptions, such as the internal rate of return and the adjustment multiplier of the mortality probability. [ABSTRACT FROM AUTHOR]

Problem definition: For grocery retailers, managing perishable food that is nearing expiry is a major challenge. Donating food to food banks is socially responsible, as it improves local communities and reduces waste generation. It also diverts food to a secondary, quality-differentiated market. Academic/practical relevance: In this paper, we quantify the economic impacts of this secondary market for food by examining donation and pricing behaviors for competing retailers. Methodology: We use a structural model of price-discriminating oligopoly retailers to study the effect of food donations on store and category-level demand and equilibrium prices. Empirically, we estimate the food donation effect using a unique data set of food donations and sales for several categories of perishable foods across two major retail chains that compete in the same market. Results: The competitive effects of food donations follow from the price-discrimination logic. First, food donations create a direct demand effect. Donations raise the average quality of products on display, shifting demand curves inward and rotating them clockwise (e.g., more inelastic). Second, food donations create a market enhancement effect, softening price competition and raising equilibrium prices among competing retailers. Managerial implications: Food donations increase food prices and store profits, tying the socially responsible option to an economic benefit. This study contributes a new type of reuse operation to the literature on closed-loop supply chains. Funding: Funding from the Agriculture and Food Research Initiative (National Institute for Food and Agriculture, U.S. Department of Agriculture) [Grant 2020-67021-31377] is acknowledged. Supplemental Material: The online supplement is available at https://doi.org/10.1287/msom.2022.1185. [ABSTRACT FROM AUTHOR]

Problem definition: We study the economic rationale for certified pre-owned (CPO) programs and characterize the mechanism through which they influence secondary markets to create value for durable goods firms and consumers. Academic/practical relevance: Our study on understanding the market impact of CPO programs is highly relevant for industry given their prevalence in practice. Our work also contributes to the adverse selection literature in the context of the "lemons problem" by uncovering the mechanism underpinning CPO programs and how they improve market efficiency. Methodology: We use a game-theoretic durable goods model that captures CPO program features to identify how CPO programs improve market efficiency. We further investigate how CPO program size, as determined by program qualification criteria, plays a role in improving market efficiency. Results: We show that the mechanism underpinning CPO programs consists of two mutually reinforcing effects: a more effective segmentation of used product buyers through high- and low-quality product differentiation and a higher trade-in discount to used product owners. The former effect generates a higher revenue, which, in turn, allows for a higher trade-in discount. This translates to more high-quality products being traded in, more new products being purchased, and more used products being sold in the secondary market (i.e., increased market efficiency). We also show that these two effects are strengthened as the CPO program size increases. Finally, we test hypotheses deriving from our theoretical results in the context of the U.S. automotive industry. Our empirical findings are consistent with the conclusions of our theoretical work. Managerial implications: Durable goods firms can proactively manage their CPO programs by appropriately setting trade-in discounts and managing price discrimination between CPO and non-CPO products. CPO program qualification criteria can be used to alter CPO program size and, hence, the level of market efficiency improvement induced by these choices. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.1176. [ABSTRACT FROM AUTHOR]