Download or read book Three Essays Related to Behavioral Finance Issues in the Indian Stock Market written by Shah Saeed Hassan Chowdhury and published by . This book was released on 2010 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Behavioral Finance written by Ziyang Geng and published by . This book was released on 2013 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Chapter 1, we study the trading pattern of rich individual investors. To the contrary of the current literature that individual investors trade excessively, and that trading is hazardous to their wealth, we find that in the Chinese stock market, individual investors with stock holdings over 5 million RMB benefit from trading. Our results show that these super rich individual investors trade far more extensively than the market average. Yet they manage to beat the performance of the market portfolio in China by a large margin. Further investigation attributes their persistent excess returns to informational advantages. We find evidence that they trade against behavioral investors around good news announcements. In Chapter 2, we study a puzzling phenomenon in the Chinese stock market, that is a stock's price and its trading volume rise significantly after public news, unrelated to a concrete change in the firm's value. We propose a model of trade-based manipulation to explain this phenomenon. In this model, a large number of speculative manipulators coordinate implicitly after public news events to exploit investors with behavioral biases. We provide empirical evidence that is consistent with the prediction of the model. Stocks that have low institutional investor holdings or that have experienced a recent decline in value are more likely to be manipulated. Manipulated stocks experience price reversals after the manipulation. We suspect that speculative manipulators are investors with more than five million RMB in stocks' value. These investors accumulate shares to pump up the stock price initially and then dump them after the significant increase in price. Their accounts also realize abnormally high returns during the event days. In Chapter 3, we study the cross-sectional differences in IPO pricing under sentiment and disagreement influences in the Chinese stock market. We find that the first-day returns of IPOs are positively related to market sentiment and disagreement over their offer prices. Hard-to-value IPO stocks earn higher first-day returns when investor sentiment is higher. Issuers in the Chinese stock market are not able to time the market for regulatory reasons, making our results less affected by the endogenous issue between market sentiment and IPO underpricing observed in the US market. A unique data set containing analysts' forecasts about IPO offer prices allows us to measure the disagreement over the IPO valuations directly, which is also not available for the US market.

Download or read book Three essays in behavioral finance written by Byoung-Hyoun Hwang and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Behavioral Aspects in Financial Markets written by Hsiang Yin and published by . This book was released on 2003 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Behavioral Finance written by Xing Huang and published by . This book was released on 2013 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three essays in behavioral finance. It explores investors' (non-standard) behaviors and their impacts on market efficiency and market valuations. I strive to empirically characterize how market participants behave, and to identify how these behaviors can improve our understanding of the financial market. The first chapter studies the impact of prior investment experience in an industry on the subsequent purchase of new stocks in the same industry. Using trading records data for households at a large discount broker from 1991 to 1996, I establish that the experience of positive excess returns in a given industry increases the probability of purchasing similar stocks in that industry relative to other industries. This result is robust to industry momentum, wealth effects, and investor heterogeneity. The effect decays when the experience is further in the past. Furthermore, I find that investor sophistication mitigates this experience effect. These results are consistent with mechanisms where investors put more weight on their own experience than on other available historical information when updating the beliefs about an industry's future return. The results are also consistent with investors learning about their stock-picking ability in an industry from their experienced outcomes. In the second chapter, I ask the question: do investors slow to incorporate return-relevant information if it reflects firms' operations abroad? Using the corresponding industry return in the foreign countries, I show that foreign operations information is slowly incorporated into stock prices. A trading strategy exploiting the foreign operations information of multinational firms generates a monthly abnormal return of approximately $0.80$ percentage points, controlling for risk-based factors. The return predictability is not driven by U.S. industry momentum, global industry momentum or foreign country-specific industry momentum. The third chapter further explores the underlying mechanism to explain the market under-reaction to foreign information identified in the second chapter. The return predictability becomes more pronounced for smaller firms and firms with less analyst coverage, lower institutional holdings, lower fraction of foreign operations and more complicated international operations structure. I also find that stock prices respond more to foreign operations information during the month of a quarterly earnings announcement or when there is more foreign news relative to domestic news appearing in the media. In addition, information about firms' operations in Asia is delayed more than information about operations in Europe and English-speaking countries. These results are consistent with the hypothesis that news about multinational firms' foreign operations diffuses gradually, indicating investors' limited attention and processing capacity for foreign information.

Download or read book Three essays in behavioral finance written by Yunjin Sun and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Behavioral Finance written by Oluwadamilola Kabiawu and published by . This book was released on 2014 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Papers on Behavioral Finance and Market Inefficiencies written by Xiaomeng Lu and published by . This book was released on 2015 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: The three chapters in this dissertation provide new evidence on inefficiencies in the stock market, and offer some novel explanations for the cause of these inefficiencies due to the existence of investors' behavioral biases and market frictions. In the first chapter (joint with Ziyang Geng), we study the active role of rational investors in creating mispricing in the Chinese stock market. In existing behavioral finance literature on stock mispricing, rational investors largely play a passive role in tolerating mispricing due to limits to arbitrage. In this essay, we show that rational speculators sometimes proactively and intentionally create mispricing by driving up stock prices away from their fundamental values through synchronized attacks with explosive trading volumes. The inflated stock price is subsequently supported by new rounds of irrational buyers who are subject to extrapolation bias and by existing stockholders who are reluctant to sell due to the disposition effect. This paper develops a simple model to illustrate how bubble-creating attacks can succeed in equilibrium under certain limits-to-arbitrage conditions, and provides consistent empirical evidence in the Chinese stock market using investors' trading data from a large brokerage company in China. In Chapter 2 of my dissertation, motivated by existing evidence that individual investors have a preference for stocks with low nominal prices, I investigate the importance of nominal stock price in the cross-sectional pricing of stocks in the Chinese stock market. Portfolio-level analyses and firm-level cross-sectional regressions indicate a negative and significant relation between nominal prices and subsequent returns for stocks with low tradable market capitalization. Average raw and risk-adjusted return differences between the lowest and highest nominal price deciles exceed 1% per month for stocks in the lowest tercile of tradable market capitalization. The return difference between high-priced and low-priced stocks is not explained by existing predictors of expected returns, such as size, book-to-market ratio, momentum, short-term reversal, liquidity, and skewness. The magnitude of this low nominal price premium is influenced by incremental participation of new individual investors. I also provide additional evidence consistent with the hypothesis that rational speculators induce investors with a preference for low-priced stocks to trade in a way that exacerbates this anomaly. In the third chapter (joint with Peng Liu and Ke Tang), we study the economic linkage between homebuilder stock market performance and commodity futures market information on a major component of building materialslumber. The price of lumber plays a dual role in determining homebuilder prots: it represents a production input cost and serves as a future housing demand indicator. Using all US publicly listed homebuilder stocks, we show that the housing demand effect dominates the builderlumber relationship. This effect is robust even after we control for the Federal Housing Finance Association (FHFA) housing price index (HPI). Our results further indicate that the slope of the lumber futures curve serves as a cross-market signal of future housing demand and thus of homebuilder stock market performance.

Download or read book Confusion de Confusiones 1688 written by José de la Vega and published by Colchis Books. This book was released on 1957 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the first that describes the practices of any stock exchange; it makes evident a high development of practices, with puts, calls, pools, and manipulations; and it appeared as early as the seventeenth century. Not inappropriately the stock exchange described is that of Amsterdam, a city which at the date of the volume’s publication —1688 — was still the leading financial center of the world. The book, to be sure, is hardly a systematic account of the institution; the author pursued moral, philosophical, and rhetorical objectives, and, while saying a lot that seems now to be of little value, manages somehow to leave unsaid a great deal that would be of interest for us. Nevertheless, it represents, even in its peculiar form, a really important source of information about the stock exchange, and indeed about the Dutch business world of that period.

Download or read book Three Essays on Behavioral Finance written by Gabriele M. Lepori and published by . This book was released on 2008 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Herd Behavior in Financial Markets written by Sushil Bikhchandani and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Handbook of Research on Behavioral Finance and Investment Strategies Decision Making in the Financial Industry written by Copur, Zeynep and published by IGI Global. This book was released on 2015-01-31 with total page 559 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an ever-changing economy, market specialists strive to find new ways to evaluate the risks and potential reward of economic ventures by assessing the importance of human reaction during the economic planning process. The Handbook of Research on Behavioral Finance and Investment Strategies: Decision Making in the Financial Industry presents an interdisciplinary, comparative, and competitive analysis of the thought processes and planning necessary for individual and corporate economic management. This publication is an essential reference source for professionals, practitioners, and managers working in the field of finance, as well as researchers and academicians interested in an interdisciplinary approach to combine financial management, sociology, and psychology.

Download or read book Financial Issues in Emerging Economies written by Rita Biswas and published by Emerald Group Publishing. This book was released on 2020-11-10 with total page 195 pages. Available in PDF, EPUB and Kindle. Book excerpt: This special issue focuses on a gamut of topics ranging from monetary policy to corporate governance in emerging economies. Of the eleven papers it includes, five were selected from the II International Conference on Economics and Finance (ICEF-II) in Bengaluru, India.

Download or read book China s Rise And Internationalization Regional And Global Challenges And Impacts written by Filip Abraham and published by World Scientific. This book was released on 2020-04-15 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: 2018 marks the 40th anniversary of the start of China's reform and opening up policy, which created China's growth miracle with an annual average growth rate of around 9.5 percent. China's rapid rise and internationalization has also generated profound impacts both regionally and globally. This edited book aims to bring together academics and researchers at policy institutions to discuss ongoing research on a wide range of theoretical and empirical issues related to China's rapid rise and internationalization from both regional and global perspectives.

Download or read book Current Issues in the Economy and Finance of India written by Aswini Kumar Mishra and published by Springer. This book was released on 2018-09-13 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: This proceedings volume highlights important points of achieving a balanced and sustained growth path from diverse economics and finance perspectives, touching on a wide array of economic and social analyses in India. Featuring contributions presented at the 2018 International Conference on Economics and Finance (ICEF-2018) held at the Birla Institute of Technology and Science, Pilani, Goa, India, the enclosed papers explore topics such as inflation dynamics, information transmission in post-recession era, leverage effect and volatility asymmetry, structural change and economic growth and reforming tax systems, among others. The Indian economy today is remarkable and, not surprisingly, it is growing very rapidly. It has emerged as the fastest growing major economy in the world as per the Central Statistical Organization (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10 to15 years, backed by its strong democracy and partnership. At the backdrop of impressive progress of the Indian economy during the last two decades, the question that remains to be answered is does India still have a long way to go before it is functioning well as a market economy? This book critically examines the performance of the Indian economy at the national, state and sectorial levels. Featuring contributions from leading academicians, scholars and practitioners from Asia and the rest of the world, this book is an asset to students, professors, scholars, practitioners and policy makers in the areas of India economics, finance and sustainable development.

Download or read book Contemporary Issues in Finance Investment and Banking in Malaysia written by Zulkefly Abdul Karim and published by Springer Nature. This book was released on 2024-02-13 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a collection of research works by experienced academics focusing on the current issues of fintech and cryptocurrency in the context of Malaysia. The book aims to fill the gap in the extant literature on the topic in Southeast Asia. The book starts with a discussion on the role of monetary policies in the advent of the current trend where cryptocurrencies are being used more widely as a medium of exchange compared to conventional fiat money. It then goes on to provide a comparative analysis for beginners regarding the differences between cryptocurrencies and stocks, considering facets such as ownership, methods of exchange, volatility, regulation, and their interconnectedness. Also discussed are the factors influencing on-line investment options using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) review method, a comparison of Islamic banking products and conventional fintech. The book ends on an analysis of the impact of the COVID-19 pandemic on the Malaysian stock market. This book is a valuable read for undergraduate students, postgraduate students, academicians, researchers, and professionals working in the economics, finance, and banking industries, particularly in Southeast Asia.

Download or read book Handbook of Behavioral Economics Foundations and Applications 1 written by and published by Elsevier. This book was released on 2018-09-27 with total page 749 pages. Available in PDF, EPUB and Kindle. Book excerpt: Handbook of Behavioral Economics: Foundations and Applications presents the concepts and tools of behavioral economics. Its authors are all economists who share a belief that the objective of behavioral economics is to enrich, rather than to destroy or replace, standard economics. They provide authoritative perspectives on the value to economic inquiry of insights gained from psychology. Specific chapters in this first volume cover reference-dependent preferences, asset markets, household finance, corporate finance, public economics, industrial organization, and structural behavioural economics. This Handbook provides authoritative summaries by experts in respective subfields regarding where behavioral economics has been; what it has so far accomplished; and its promise for the future. This taking-stock is just what Behavioral Economics needs at this stage of its so-far successful career. Helps academic and non-academic economists understand recent, rapid changes in theoretical and empirical advances within behavioral economics Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics Written for those who wish to become quickly acquainted with behavioral economics