Investors behavior in Stock market with special reference to Palakkad District

Institutional Investors and Stock Market

We present a theory of excess stock market volatility, in which market movements are due to trades by very large institutional investors in relatively illiquid markets. Such trades generate significant spikes in returns and volume, even in the absence of important news about fundamentals. We derive the optimal trading behavior of these investors, which allows us to provide a unified explanation...

Glued to the TV: Distracted Investors and Stock Market Liquidity

We study the causal effect of trading on stock market liquidity. We exploit episodes of sensational news (exogenous to the market) that distract retail investors. On “distraction days” we find that trading activity, liquidity, and volatility all decline among stocks owned predominantly by retail investors. These findings, complemented by additional tests, establish that retail investors contrib...

Investors Sentiments To Mergers Announcement & Stock Market Reaction

The Past decade have seen a string of mergers and acquisitions both within India and outside by Indian as well as foreign companies. It is observed that the day after a merger or acquisition announcement sees flurried activity in the stock market with the shares of a firm either rising or dropping with the announcement. This paper examines if the stock market reaction depends on the announcemen...

Determinants Of Investors Financial Behavior In Tehran Stock Exchange

The Threshold Effect of Investors Sentiment On Stock Market Return

The behavioral financial perspective shows some changes in the price of securities have no fundamental reason and depend on the irrational behaviors of investors as measured by the investor sentiment. Investor sentiment plays an important role in the volatility of securities prices and returns. At first, by finding the thresholds and testing these points statistically, we showed that the invest...