Topic: Markets
Your Chinese Supplier Pollutes – It Dents Your Stock Price?
The market penalizes customers’ shares more than those of the polluter
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
When Financial Intermediaries Sneeze, These Assets Catch a Cold
Some investment vehicles are more reliant than others on the health of trading firms
What Makes a True Financial Crisis?
Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown
What Limited Attention Does to Efficient Market Theory
Stocks don’t react to news immediately because, well, we’re human
What Happens to Pesos When Dollars Go Digital?
As major central banks adopt digital currency, emerging countries will feel mixed effects
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
Unintended Consequence of Stale Corporate Bond Fund Prices Amid Fed Tightening
In wild markets, do the most dated prices actually reduce redemptions?
Treasury Securities Are Actually Cheap Sometimes
They don’t trade at an absolute equal to intrinsic value, despite their image as the world’s investment bedrock
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
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
The Limited Payoff in Auto Insurance Advertising
Ads aimed at brand awareness are shown to be more effective
The Collective Wisdom of Options Trades as Interest Rate Predictor
Skewness, measuring the range of biases, strongly suggests rate moves
