Topic: Markets
Your Chinese Supplier Pollutes – It Dents Your Stock Price?
The market penalizes customers’ shares more than those of the polluter
Clues to the Market When Mortgage Originators Delay Securitization
With high-quality borrowers hard to judge from afar, Alt-A market offers quiet signal on creditworthiness
The Strange Case of the Missing Stock Market Return
Investors in leveraged companies take on extra risk, but research indicates they see no offsetting return
You Call That Fun? Why Individual Stock Investors Bother
Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices
When Younger Investors Overreact to News, Others Feel It
Inexperienced investors, lacking historical context, impact markets
Does Big News Drown Out Corporate Earnings Disclosures?
Henry Friedman’s research finds, surprisingly, that major economic news actually heightens attention paid to company announcements
In China, Big Investors Have Brilliant Timing ― Or Do They Know Someone?
A scan of a million brokerage accounts finds the wealthy trade ahead of market-moving news
How Very Small Stocks Skew Investing Wisdom
Well-known market anomalies are largely absent among the biggest stocks
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
The Limited Payoff in Auto Insurance Advertising
Ads aimed at brand awareness are shown to be more effective
Citizens Are Not Fooled by Fake Statistics
What happened when the Argentine government lied about inflation numbers?
The Moat That Keeps Complex Asset Strategies Profitable
Andrea Eisfeldt finds that hedge funds with infrastructure to execute sophisticated arbitrage crowd out less-expert investors
Keynes vs. FDR: Lessons from the Great Recession
Sebastian Edwards finds Keynes’ public take-down of Roosevelt’s gold policies still relevant today
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
New Appreciation for a Classic Stock Market Gauge
The relationship between short- and longer-term moving averages has strong predictive power for share price returns
What Drives LBO Fever? More Than Just Cheap Loans
Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts