The purpose of this paper is to emphasize the implication of neurofinance with respect to the efficient market hypothesis. To this end, the paper first brings to the fore two aspects of neurofinance, namely, thinking imposes strain on the mind, and making judgment involves emotions, as a result of which some individuals introduce noise to financial markets. The paper then discusses the role of noise traders in making financial markets inefficient.

We augment an otherwise standard business cycle model with a richer government sector, and add a modified Cash-in-Advance (CIA) considerations. In particular, the CIA constraint of Cole (2020) is extended to include private investment and government consumption, and allows a proportion of total expenditure to be done using credit. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999-2018), which gives a role to money in accentuating economic fluctuations. In particular, the modified CIA constraint produces a mechanism that allows the framework to reproduce better observed variability and correlations among model variables and those characterizing the labor market in particular.

The study aims to assess the impact of directors' report on the stock returns of selected firms. The sample considered for the study includes Nifty 50 companies, excluding 12 banking and financial firms for five years, i.e., from 2013-14 to 2017-18. Five parameters from the directors' report, i.e., Activity (AC), Optimism (OP), Certainty (CE), Realism (RE) and Commonality (CO), are considered as independent variables, whereas stock return is considered as the dependent variable. Beta, market capitalization and debt-equity ratio are control variables. The study applies panel fixed and random effects model and Panel Vector Auto-Regression (PVAR) to examine the impact of directors' report on stock returns. The study observes unidirectional causality from OP and CE to stock returns. Reverse unidirectional causality is observed from stock returns to CO. The study further reveals that CO and CE negatively impact stock returns. The implications of the study for the stakeholders of the companies are: first, they need to follow the directors' report in addition to financial statements and second, the kind of information which is important for them is related to CO and CE features of the report. The study contributes to the existing literature by using content analysis on directors' report and its impact on stock price. It also analyzes the informational dynamics between the content analysis parameters and stock returns.

Born in an agricultural family in Tummapudi village of Guntur district, Andhra Pradesh, Dr Mahendra Dev had his elementary schooling in his native village and later went to a Zilla Parishad School of a nearby village by walking about 6 km every day. His father, Sri Sanjeev Dev, an aesthetic person, was a multifaceted genius, known for his extensive writings on fine arts, philosophy, psychology, etc., both in Telugu and English. Eminent personalities from different walks of life used to visit his home engendering animated discussions on various social issues, besides literature. These discussions had not only created awareness in young Dev about various socio-politico-economic issues that haunted the country but also kindled passion in his mind for studying social sciences.