Changes in trading behavior of analyst‐affiliated institutions: the impact of the global analyst research settlement

2021 ◽  
Author(s):  
Hyoseok (David) Hwang
Keyword(s):  
Trading Behavior ◽  
The Impact

Investor attention and market correction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhongdong Chen
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Trading Behavior ◽  
Investor Attention ◽  
Information Effect ◽  
Content Type ◽  
Economic Significance ◽  
New Information ◽  
Positive Volume ◽  
The Impact

PurposeThis study disentangles the investor-base effect and the information effect of investor attention. The former leads to a larger investor base and higher stock returns, while the latter facilitates the dissemination of information among investors and impacts informational trading.Design/methodology/approachUsing positive volume shocks as a proxy for increased investor attention, this study evaluates the impacts of the investor-base effect and the information effect of investor attention on market correction following extreme daily returns in the US stock market from 1966 to 2018.FindingsThis study finds that the investor-base effect increases subsequent returns of both daily winner and daily loser stocks. The information effect leads to economically less significant return reversals for both the daily winner and daily loser stocks. These two effects tend to have economically more significant impacts on the daily loser stocks. The economic significance of these two effects is also related to firm size and the state of the stock market.Originality/valueThis study is the first to disentangle the investor-base effect and the information effect of increased investor attention. The evidence that the information effect facilitates the dissemination of new information and impacts stock returns contributes to the strand of studies on the impact of investor attention on market efficiency. This evidence also contributes to the strand of studies analyzing the impact of informational trading on stock returns. In addition, this study provides evidence for market overreaction and the subsequent correction. The results for up and down markets contribute to the literature on the investors' trading behavior.

Does investor personality moderate the relationship between information sources and trading behavior? Evidence from Chinese stock market

2017 ◽  
Vol 43 (5) ◽  
pp. 545-566 ◽  
Author(s):  
Muhammad Zubair Tauni ◽  
Zia-ur-Rehman Rao ◽  
Hong-Xing Fang ◽  
Minghao Gao
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Chinese Stock Market ◽  
Sources Of Information ◽  
Trading Behavior ◽  
Content Type ◽  
Trading Frequency ◽  
Word Of Mouth Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of the key sources of information, namely, financial advice, word-of-mouth communication and specialized press, on trading behavior of Chinese stock investors. The study also analyzed if the association between the key sources of information and trading behavior is influenced by investor personality. Design/methodology/approach The authors adopted the Big Five personality framework and examined the survey results of individual stock investors (n=541) in China. Personality traits of investors were measured by the NEO-Five Factor Inventory (Costa and McCrae, 1989). The authors performed probit regression analysis to evaluate the moderating influence of investor personality traits on the association between sources of information and stock trading behavior. Findings The results of the study confirm the previous findings that the key sources of information used by investors as a foundation of their financial choices have a significant influence on their trading behavior. The study also provides empirical evidence that investor personality traits moderate the relationship between the key sources of information and trading behavior. Financial advisors tend to increase the frequency of trading in investors with openness, extraversion, neuroticism and agreeableness personality traits, and tend to decrease the intensity of trading in investors with conscientiousness trait. On the other hand, financial information acquired from word-of-mouth communication is more likely to enhance trading frequency in extraverted and agreeable investors, and is more likely to reduce trading frequency in investors with openness, conscientiousness and neuroticism traits. Finally, the use of specialized press leads to more adjustment in portfolios of the investors with openness and conscientiousness traits than those with other personality traits. An alternative mediated model was not supported. Originality/value This research contributes to information search literature and behavioral finance literature and provides empirical evidence that the psychological characteristics of investors are significant predictors of the variations in information-trading link. The study offers new theoretical insights of investors’ behavior due to the characteristics of Chinese stock market which are unique from other stock markets in the world. To the authors’ best knowledge, no previous study has been conducted so far in Chinese stock market to explore variations with regards to the impact of the key sources of information on trading behavior by the Big Five investor personality and this paper seeks to fill this gap.

The Power of Stars: Do Star Actors Drive the Success of Movies?

2007 ◽  
Vol 71 (4) ◽  
pp. 102-120 ◽  
Author(s):  
Anita Elberse
Keyword(s):  
Group Dynamics ◽  
Motion Picture Industry ◽  
Trading Behavior ◽  
Cross Sectional ◽  
Track Record ◽  
Box Office ◽  
Film Studios ◽  
Sectional Analysis ◽  
The Impact ◽  
Insight Into

Is the involvement of stars critical to the success of motion pictures? Film studios, which regularly pay multimillion-dollar fees to stars, seem to be driven by that belief. This article sheds light on the returns on this investment using an event study that considers the impact of more than 1200 casting announcements on trading behavior in a simulated and real stock market setting. The author finds evidence that the involvement of stars affects movies' expected theatrical revenues and provides insight into the magnitude of this effect. For example, the estimates suggest that, on average, stars are worth approximately $3 million in theatrical revenues. In a cross-sectional analysis grounded in the literature on group dynamics, the author also examines the determinants of the magnitude of stars' impact on expected revenues. Among other things, the author shows that the stronger a cast already is, the greater is the impact of a newly recruited star with a track record of box office successes or with a strong artistic reputation. Finally, in an extension to the study, the author does not find that the involvement of stars in movies increases the valuation of film companies that release the movies, thus providing insufficient grounds to conclude that stars add more value than they capture. The author discusses implications for managers in the motion picture industry.

Managers’ and Investors’ Responses to Media Exposure of Board Ineffectiveness

2009 ◽  
Vol 44 (3) ◽  
pp. 579-605 ◽  
Author(s):  
Jennifer R. Joe ◽  
Henock Louis ◽  
Dahlia Robinson
Keyword(s):  
Media Exposure ◽  
Shareholder Wealth ◽  
Economic Consequences ◽  
Individual Investors ◽  
Corporate Boards ◽  
Trading Behavior ◽  
Economic Agents ◽  
Noisy Information ◽  
Corrective Actions ◽  
The Impact

AbstractWe analyze the impact of the press on the behavior of various economic agents by examining how media exposure of board ineffectiveness affects corporate governance, investor trading behavior, and security prices. Our focus on board quality is motivated by the strong media criticism to which corporate boards and corporate America, in general, have been recently subjected. The results indicate that media releases of (noisy) information have significant economic consequences. In particular, media exposure of board ineffectiveness forces the targeted agents to take corrective actions and enhances shareholder wealth. Individual investors appear to react negatively to the media exposure, whereas investment firms act as if they anticipate the targeted firms’ corrective actions.

scholarly journals Pengaruh Moderasi Kepribadian (Big Five Personality) Terhadap Hubungan Akuisisi Informasi dan Perilaku Perdagangan Saham Pada Investor Muda di Indonesia

2019 ◽  
Vol 19 (2) ◽  
pp. 82
Author(s):  
Chentya Novianty ◽  
Maria C. Widyaastuti
Keyword(s):  
Big Five ◽  
Analytical Method ◽  
Information Acquisition ◽  
Positive Relationship ◽  
Big Five Personality ◽  
Trading Behavior ◽  
Stock Trading ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

<p><strong>Abstrak</strong></p><p><strong>Tujuan </strong>- Penelitian ini bertujuan untuk menganalisis dampak frekuensi akuisisi informasi pada frekuensi perdagangan saham yang dimoderasikan oleh Kepribadian (Big Five Personality).</p><p><strong>Desain/Metodologi/Pendekatan - </strong>Data diperoleh langsung melalui penyebaran kuesioner kepada 304 responden yaitu investor muda (berusia 21 sampai 30 tahun) di Indonesia. Rancangan penelitian yang digunakan dalam penelitian ini adalah Pengujian Hipotesis. Metode analisis yang digunkanan dalam penelitian ini Ordinal Logistic Regresion dengan menggunakan program SPSS.</p><p><strong>Hasil Penelitian</strong> -  Hasil dari penelitian ini adalah terdapat hubungan pada akuisisi informasi dan perilaku perdagangan saham, Investor yang tergolong Openness &amp; Neuroticism akan memperlemah hubungan kedua variabel tersebut, sedangkan Conscientiousness, Extraversion dan Agreeableness akan memperkuat hubungan kedua variabel tersebut.</p><p><strong><em><br /></em></strong></p><p><strong><em>Abstract</em></strong></p><p> </p><p><strong><em>Purpose </em></strong><em>–</em><em>This paper was to investigate the impact of the frequency of information acquisition on the  frequency of stock trading</em></p><p><strong><em>Des</em></strong><strong><em>ign</em></strong><strong><em>/Met</em></strong><strong><em>hodology</em></strong><strong><em>/</em></strong><strong><em>Approach </em></strong><em>–</em><em> Data </em><em>obtained directly by distributing questionnaires to 304 respondents is young investors (aged 21 to 30 years) in Indonesia. The research design used in this study is hypothesis testing. The analytical method used in this research is Ordinal Logistic Regresion using SPSS program.</em></p><p><strong><em>Findings - </em></strong><em>The results of this study were that there is a positive relationship between information acquisition and trading behavior. Investors belonging to Openness &amp; Neuroticism will weaken the relationship of both variables, while Conscientiousness, Extraversion and Agreeableness will strengthen the relationship of both variables.</em></p><p> </p>

The impact of closing mechanism changes: evidence from the Shanghai stock market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dan Ma ◽  
Chunfeng Wang ◽  
Zhenming Fang ◽  
Ziwei Wang
Keyword(s):  
Stock Market ◽  
Market Quality ◽  
Market Manipulation ◽  
Trading Behavior ◽  
Content Type ◽  
Price Manipulation ◽  
Closing Price ◽  
Investor Trading ◽  
The Impact ◽  
Closing Mechanism

PurposeThe purpose of this paper is to empirically examine the impact of closing mechanism changes on market quality, investor trading behavior and market manipulation in the Shanghai stock market.Design/methodology/approachA dummy variable is constructed indicating whether the closing mechanism is call auction or continuous auction. Market quality is measured from aspects of liquidity, volatility and price continuity; investor trading behavior is scaled by order timing and order aggressiveness, and a price deviation indicator is the proxy of manipulation. Using panel regression, this study examines the impact of closing mechanism changes based on intraday transaction data from the Shanghai stock market.FindingsThe conclusions are as follows: First, market quality improves after the closing mechanism is reformed in terms of liquidity, volatility and price continuity. Second, order strategy changes significantly in the closing call market, and investors trade more aggressively in the continuous trading period before closing. Third, the closing call mechanism restrains the closing price manipulation and thus prompts an efficient closing price.Originality/valueThis paper examines the policy effects of closing mechanism changes from aspects of market quality, trading behavior and price manipulation, providing pieces of evidence for trading mechanism design and market supervision in emerging markets.

Moderating effect of investor demand: privatized IPOs and flipping activity in the Pakistan IPO market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayesha Anwar ◽  
Rasidah Mohd-Rashid
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
High Volume ◽  
Least Square ◽  
Valuable Insight ◽  
Trading Behavior ◽  
Content Type ◽  
Public Offerings ◽  
Price Performance ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of privatized initial public offerings (IPOs) on flipping activity in the Pakistan IPO market. Design/methodology/approach This study sampled 95 IPOs listed on the Pakistan stock exchange over the period of 2000 to 2019. The ordinary least square technique and quantile regression were used to examine the impact of privatized IPO on flipping activity. Findings The present study finds that privatization affects flipping activity and creates a quality signal in Pakistan’s IPO market. The findings of this study also show that privatized IPOs were subjected to high levels of flipping activity compared to non-privatized IPOs. Additionally, investors’ demand has been found to moderate the relationship between privatized IPOs and flipping activity in Pakistan’s IPO market. Research limitations/implications Based on the fact that the sample consists of a combination of privatized and non-privatized IPOs, the results provide valuable insight into factors that may lead to unusual trading behavior/flipping during the first day of listing. Originality/value Despite several studies on events (e.g. short- and long-term price performance) around IPO, there is little evidence on how privatized IPOs affect flipping activity, which is a high volume of trading immediately after listing.

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