Does the United States Bond Yield Affect Foreign Institutional Investor Inflows to India and Indian Stock Market?

Foreign Investor Participation in Privatizations: Does the Institutional Environment Matter?

Foreign direct investment in developing countries has recently received a renewed attention as a major determinant of financial development. Indeed, where markets are financially constrained, foreign investment offers a viable financing opportunity assorted with a transfer of technological and managerial know-how. In this paper, we examine the determinants of foreign investors’ participation in...

Does Investor Sentiment affect Cross- Sectional Stock Returns on the Chinese A-Share Market?

Published stock recommendations as institutional investor sentiment in the near - term stock market

This paper investigates the role of published stock recommendations in print and online media as investor sentiment in the near-term German stock market. In line with extant literature on other sentiment measures, vector autoregressions reveal that past stock returns drive today’s sentiment, but not the other way around, and that sentiment is a powerful predictor of itself. In particular, senti...

Stock Market Interactions between the BRICS and the United States: Evidence from Asymmetric Granger Causality Tests in the Frequency Domain

The interaction of BRICS stock markets with the United States is studied using an asymmetric Granger causality test based on the frequency domain. This type of analysis allows for both positive and negative shocks over different horizons. There is a clear bivariate causality that runs both ways between the United States stock market and the respective BRICS markets. In addition, both negative a...

Investor Sentiment in the Stock Market

Real investors and markets are too complicated to be neatly summarized by a few selected biases and trading frictions. The “top down” approach to behavioral finance focuses on the measurement of reduced form, aggregate sentiment and traces its effects to stock returns. It builds on the two broader and more irrefutable assumptions of behavioral finance—sentiment and the limits to arbitrage—to ex...