This paper demonstrates that investor irrationality can be contagious across markets. Studies addressing the pros and cons of opening derivatives markets have failed to pay sufficient attention to the roles of speculative activities. This paper investigates how trading activities that are unrelated to fundamentals affect the impact of derivatives on stock markets. By using unique data from the ...

We examine the effect of aggregate measures of CEO and consumer confidence on firm financing and investment. We find that capital expenditure, merger activity, and financing activity all increase with CEO and consumer confidence. However, while CEO confidence positively predicts future sales growth and return on assets, consumer confidence is negatively related to these performance measures as ...

The fallout of the Enron debacle spurred legislative and regulatory activity aimed at strengthening corporate governance and preventing another corporate implosion. Confronting shattered investor confidence, Congress responded to these corporate governance fiascos by enacting the now infamous Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission (SEC), meanwhile, called on the self...

Using a machine-learning technique known as random forests, we analyze the role of investor confidence in forecasting monthly aggregate realized stock-market volatility United States (US), over and above wide-array macroeconomic financial variables. We estimate forests on data for period from 2001 to 2020, study horizons up one year by computing forecasts recursive rolling estimation window. fi...

Purpose: The aim of this study is to investigate the relationship between information technology governance and cyber security, how affects investor confidence. Theoretical framework: drawing upon theories concepts from technology, risk management, finance provide a comprehensive understanding IT governance, Design/methodology/approach: statistical software Smart-PLS was utilized perform an ana...

We test the predictive ability of investor sentiment on the return and volatility at the aggregate market level in the U.S., four largest European countries and three Asia-Pacific countries. We find that in the U.S., France and Italy periods of high consumer confidence levels are followed by low market returns. In Japan both the level and the change in consumer confidence boost the market retur...

Securitization relies on confidence. As a security is tied to a particular asset (or pool of assets), in principle the investor loses when the asset defaults. The issuer of the security, however, could promise to use the proceedings from other of its assets to cover the investor in such an event. Even though the issuer is not legally bound to fulfill its promise, it may have incentives to avoid...

In this study, we focused on Tehran stock exchange market analysis based on applying moving average rules. The Tehran stock exchange in the Middle East has evolved into an exciting and growing marketplace where individual and institutional investor trade securities of over 420 companies. In an attempt to examine the ability to earn excess return by exploiting moving average rules, the average a...