Purpose - Investor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic factors that influence risk perception. It also unravels the complex relationship between demographic...

A well developed and competitive financial market with financial inclusion is a must, if India has to emerge as a strong knowledge based economy. The transformation of Indian equity market, that till 1990s, was plagued with inefficiency with respect to trading, settlement and surveillance, and...

In this paper, we argue that investor sentiment is a more direct determinant for asset pricing than information, thus we propose the Sentiment Efficient Markets Hypothesis (S-EMH), complementary to the traditional Efficient Market Hypothesis (EMH), to provide a powerful instrument to interpret...

We use transaction data gathered by a large fintech firm to study retail investors’ investments in cryptocurrencies. Crypto investors tend to be young, male, high-income, and live in wealthy urban areas with high levels of self-employment and low levels of altruism. Crypto investments are...

We analyze the daily predictability of investor sentiment across four major asset classes and compare sentiment measures based on news and social media with those based on trade information. For the majority of assets, trade-based sentiment measures outperform their text-based equivalents for...

This paper explores an unexamined sentiment channel through which technical analysis can add value. We use a spectrum of technical trading strategies to build a daily market sentiment indicator that is highly correlated with other commonly used sentiment measures. This technical-analysis-based...

Portfolio trading, a recent innovation in the corporate bond market, involves trading a basket of bonds as a single piece of risk with a single market-maker. Using a proprietary dataset of portfolio inquiries, we train a machine learning algorithm to identify portfolio trades in TRACE. Using...