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.
Topics
20 Articles
Disclosure of Climate Risk Helps Stocks Trade More Smoothly
Dropping facts into a polarized investor pool reduces the impact of ideology and leads to broader ownership
Why the Stock Market Needs Gamblers
They counteract the impulses of two other market personality types
Why Rising Stocks Sometimes Reverse, Then Rally
Cultural differences and investor behavior can drive reversals and momentum
One Way the Stock Market Sends Signals to Bond Traders
Thin stock trading, amid both price volatility and a period of potential economic change, leads bond investors to seek a higher yield
Inclusion in an ETF Can Improve the Pricing of Underlying Stocks
It can also help management make capital expenditure decisions
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
A Solution to the Debate over Momentum’s Cause?
Investors may underreact when information arrives in small, continuous bits
GameStop Aside, Retail Investors Might be Terrible at Momentum Investing
Using Chinese A and B shares, institutional players outperform individuals
One Data Set That Warns Against Margin Trading
As a group, Chinese futures traders more likely to suffer margin call than to profit
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
Heading for a Divorce? Might Want to Go Easy on Stock Picking
Active traders lose their edge as a marital breakup approaches
How Overconfident Investors Influence Share Prices
Many investors simply refuse to believe that their competition in the market might know more than they do, say two professors
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
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
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
How ETFs Muffle Stock Market Feedback to Managers
The rise of passive investing leaves companies mistrusting market signals on how best to deploy capital
With Bonds, the Past Can Be Prologue
Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist
Chinese Investors Learn about Derivatives the Hard Way
An analysis of warrant trading reveals individuals’ poor grasp of complex securities
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
You Call That Fun? Why Individual Stock Investors Bother
Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices