Cross-border private equity deals have increased substantially in recent years. This study looks at the issue of how European investors view their local counterparts in the portfolio companies’ home countries. If they regard them as rivals, they will target countries that lack a private equity industry. If they view them as (potential) partners, however, they will prefer investing in countries ...

This study investigates whether Asian investors trade overconfidently and what factors affect their overconfident trading based on the theoretical predictions of Gervais and Odean (2001) that market gains make investors trade overconfidently in subsequent periods. We find that Asian investors trade more aggressively subsequent to both domestic and U.S. market gains and their overconfident tradi...

Using transaction data from the Jakarta Stock Exchange, I nd three pieces of evidence which indicate that domestic investors have an information advantage over foreign investors. First, foreign investors systematically buy at higher and sell at lower intra-day prices than domestic investors. Second, foreign investors tend to sell prior to large positive returns. Finally, the permanent impact of...

We consider a multi-period rational expectations model in which risk-averse investors differ in their information on past transaction prices (the ticker). Some investors (insiders) observe prices in real-time whereas other investors (outsiders) observe prices with a delay. As prices are informative about the asset payoff, insiders get a strictly larger expected utility than outsiders. Yet, info...

In order to solve the problem of insufficient capital adequacy, haphazard internal control, the lower international competitiveness and others, the domestic commercial banks have introduced strategic investors. In order to study whether efficiency of introducing the strategic investors is improved, this paper carries out panel data regression analysis, using data of such banks as: the China Con...

Using transaction data from the Jakarta Stock Exchange, I nd three pieces of evidence which indicate that domestic investors have an information advantage over foreign investors. First, foreign investors systematically buy at higher and sell at lower intra-day prices than domestic investors. Second, foreign investors tend to sell prior to large positive returns. Finally, the permanent impact of...

This study examines the joint effect of disclosed measurement information and investor mindset on investors' judgments of estimate precision and firm value. Consistent with psychology theory, results reveal that short horizon investors adopt a relatively concrete mindset and long horizon investors adopt a relatively abstract mindset. As a consequence, disclosing that the fair value of an impair...