Avanidhar Subrahmanyam

Distinguished Professor of Finance; Goldyne and Irwin Hearsh Chair in Money and Banking

About

Avanidhar (Subra) Subrahmanyam is an expert in stock market activity and behavioral finance. He is known for his pathbreaking research in the use of psychological principles to explain stock price movements and has published numerous articles in leading peer-reviewed finance and economics journals. Subrahmanyam’s current research interests range from the relationship between the trading environment of a firm’s stock and the firm’s cost of capital to behavioral theories for asset price behavior and empirical determinants of the cross-section of equity returns.

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15 Articles

Silver line graph, bar chart and analytical trend lines on black background having stock quotes. Illustration of the concept of investment. Research Brief / Investing

Inclusion in an ETF Can Improve the Pricing of Underlying Stocks

It can also help management make capital expenditure decisions

Three arrows that get progressively bigger that each have part of the Chinese yuan in them. Research Brief / Banking

Can Banks, Disrupted by Fintech, Adopt New Habits, Too?

In China, patent data shows commercial banks’ use of new technologies helps improve efficiency and reduce risk

Visual illustration of data Research Brief / Investing

A Solution to the Debate over Momentum’s Cause?

Investors may underreact when information arrives in small, continuous bits

Close up of a smartphone Research Brief / Investing

GameStop Aside, Retail Investors Might be Terrible at Momentum Investing

Using Chinese A and B shares, institutional players outperform individuals

Computer screen with stock trading software Research Brief / Trading

One Data Set That Warns Against Margin Trading

As a group, Chinese futures traders more likely to suffer margin call than to profit

News Coverage / Anderson Research

Active Stock Traders, Beware: Your Returns May Suffer in the Years Before a Divorce

Things get better, however, around the time the divorce settlement is made final, a study finds

Two people sit opposite of each other while working on their laptops Research Brief / Investing

Heading for a Divorce? Might Want to Go Easy on Stock Picking

Active traders lose their edge as a marital breakup approaches

High speed view in a tunnel Feature / Investing

At Last, the Momentum Investing Puzzle Solved?

The simplest explanation — “I can’t believe you know something I don’t” — may trump all the rest

Stock market ticker displays Feature / Stock Returns

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

Downhill race with aerodynamic push cars Research Brief / Investing

Momentum Investing: It Works, But Why?

After a quarter century of sprawling study, it’s time to narrow the focus and settle on an explanation

Illustration of a man looking at a stock chart Research Brief / Corporate Investment

How ETFs Muffle Stock Market Feedback to Managers

The rise of passive investing leaves companies mistrusting market signals on how best to deploy capital

Street sign with Past, Present, Future and collage of bond certificates Research Brief / Bond Market

With Bonds, the Past Can Be Prologue

Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist

Women in front of a stock ticker board Research Brief / Trading

Chinese Investors Learn about Derivatives the Hard Way

An analysis of warrant trading reveals individuals’ poor grasp of complex securities

Chinese investors having a discussion Research Brief / Investing

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

Illustration of two dice Research Brief / Investing

You Call That Fun? Why Individual Stock Investors Bother

Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices