Research indicates that individual investors trade excessively and underperform the market indices, Barber and Odean (2000). The purpose of this paper is to help explain which behavioral biases, if any, can explain this result using a simulation approach. Results indicate that putting too much weight on the current environment, anchoring, is the largest factor in explaining individual investor ...

This paper tests the hypotheses that poor investor-protection environments lead to higher information asymmetry in security markets. We compare China-based stocks, which operate in a relatively unprotected environment, to Hong Kong-based stocks. The information component in the market friction of China stocks is shown to be up to 20% larger than that of Hong Kong-based stocks. The effect is rob...

Poor communities sometimes resist private investment and destroy economic surplus even if the government has the willingness and ability to redistribute. We interpret such acts of resistance as demands for redistribution: Destruction contains credible information about how affected groups value surplus, which helps the government in implementing the optimal redistribution policy. Destruction is...

This paper aims to identify the impact of COVID-19 pandemic on stock market volatility and return as well government response performance. To analyze same, has adopted Systematic Literature Review (SLR) approach conducted a review 40 journal articles published between between2020 mid-2021. The identified that short-term outbreak policy measures had significant adverse volatility, overall In lon...

Abstract Tobin’s Q is an established measure of firm performance, based on investor confidence. However, the association between and credit ratings not well-established in literature. Using a sample Korean listed firms over 2001–2016 period, Probit regression analysis shows that overall, positively associated with ratings. for > 1 (1 <) ratio, negative (positive) relationship exists. More...

Following ESG principles is now one of the key drivers business value. In this regard, there are companies that try to mislead stakeholders, which has a negative impact on whole process responsible investment, as it reduces investor confidence. Such activity called (green) washing - imitation company’s implementation an environmental or social mission. connection with observed large trend “gree...