This paper explores whether investor sentiment has an adverse impact on corporate investment decisions and whether such impact, if present, can be effectively mitigated by sound corporate governance mechanisms. The sample comprises listed firms in Taiwan between 2003 and 2010. Empirical results indicate that investor sentiment is significantly and positively related to amount of new investment ...

The pending Trans-Pacific Partnership (TPP) trade agreement has raised controversy, fueled by leaks of the draft text and congressional debate over fast-track negotiation authority. Like similar agreements, the TPP creates the risk of government liability for enacting regulations, especially new or comprehensive measures to address climate change. This Article analyzes how the TPP’s investor pr...

We provide cross-country evidence to examine how financial market development affects innovation. Using a large data set including 34 developed as well as emerging countries, we differentiate the impacts of equity market and credit market development on a country’s innovation productivity measured by patenting. Our baseline results show that, while the development of equity markets encourages i...

If the government has the ability and willingness to redistribute the surplus created by an external investor, why do we still observe resistance to such investment, sometimes in the form of destruction of productive assets? And how does such destructive action a¤ect a government’s “investor-friendliness”? In a simple model where di¤erent social groups have di¤erent and uncertain valuation of p...

Recent research documents that institutional or large investors act as antagonists to other investors by showing opposite trading behavior following disclosure of new information. Using an extremely comprehensive official transactions data set from Finland, we set out to explore the interrelation between investor size and behavior. More specifically, we test whether investor size is positively ...

Purpose With the introduction of Markets in Financial Instruments Directive (MiFID), financial institutions are faced with many investor protection provisions; this has a major impact on day-to-day operations private banks, which provide investment services to predominately retail or non-professional investors. The purpose paper is determine how MiFID provisions regarding respect suitability co...