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Research Article
Wealth Accumulation Behavior in Emile Zola’s Fictions and It’s Implications for Financial Education
Catholic University of Pusan
Published: January 2020 · Vol. 24, No. 1 · pp. 107-117
DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2020.24.1.107
Full Text
Abstract
Emile Zola was a french naturalist novelist in 19th century who was famous for his novel, and . Among his novel, and described the wealth accumulation and failure of the main character, “Saccard”. Saccard lived in Paris in 19th century and made a fortune using the Paris redevelopment in and founding ‘la Banque Universelle’ and trading it's stocks in . I found some stories for financial education in these novels, which described that Saccard used real estates and stock trading for making a fortune. At first, there are some stories related with real estate valuation in . In the process of forced real estate acquisition of Paris government, several methods for the higher value of real estate were introduced. And those are still effective now. Also that higher rents made higher value is directly connected with the Income Approach of today's real estate appraisal methods. In , there are several issues in founding ‘la Banque Universelle’ and stock market. Among them, liquidation in stock market is almost same as today's forward contracts. And in the story of founding bank and issuing new shares, there are some teaching issues about the fraudulent payment for share, zero capital M&A and treasury stocks. Also efficient market hyphothsis can be taught by Saccard's making a fortune using information not avaiable in the market and Gundermann's point of view about the stock market. During the failure of Saccard, price manipulation can be taught and signaling effect also can be taught by Saccard's speech. I found some possibilities of classic literatures as the financial education tools.