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Overconfidence and Trading Volume
Glaser, Markus; Weber, Martin - C.E.P.R. Discussion Papers - 2003
Theoretical models predict that overconfident investors will trade more than rational investors. We directly test this hypothesis by correlating individual overconfidence scores with several measures of trading volume of individual investors (number of trades, turnover). Approximately 3000...
Persistent link: https://www.econbiz.de/10005656212
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Individual Investor Trading and Return Patterns around Earnings Announcements
Kaniel, Ron; Liu, Shuming; Saar, Gideon; Titman, Sheridan - C.E.P.R. Discussion Papers - 2011
This paper documents evidence consistent with informed trading by individual investors around earnings announcements using a unique dataset of NYSE stocks. We show that intense aggregate individual investor buying (selling) predicts large positive (negative) abnormal returns on and after...
Persistent link: https://www.econbiz.de/10008854465
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How Much Can Financial Literacy Help?
Guiso, Luigi; Viviano, Eliana - C.E.P.R. Discussion Papers - 2013
We merge survey data on a sample of individual investors containing test-based measures of financial literacy with administrative records on their assets holding and trades before, during and after the financial crisis of September 2008. This dataset allows us to design three tests of the...
Persistent link: https://www.econbiz.de/10011083388
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Stock investments at work
Hvide, Hans K; Östberg, Per - C.E.P.R. Discussion Papers - 2014
Stock market investment decisions of individuals are positively correlated with that of co-workers. Sorting of unobservably similar individuals to the same workplaces is unlikely to explain our results, as evidenced by the investment behavior of individuals that move between plants. Purchases...
Persistent link: https://www.econbiz.de/10011084477
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Finance and Efficiency: Do Bank Branching Regulations Matter?
Acharya, Viral V; Imbs, Jean; Sturgess, Jason - C.E.P.R. Discussion Papers - 2007
that financial development has important consequences for efficiency and specialization (or diversification) of investments …
Persistent link: https://www.econbiz.de/10005662195
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Volatility and Development
Koren, Miklós; Tenreyro, Silvana - C.E.P.R. Discussion Papers - 2005
Why is GDP growth so much more volatile in poor countries than in rich ones? We identify four possible reasons: (i) poor countries specialize in more volatile sectors; (ii) poor countries specialize in fewer sectors; (iii) poor countries experience more frequent and more severe aggregate shocks...
Persistent link: https://www.econbiz.de/10005662216
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Inefficient Diversification in Multimarket Oligopoly with Diseconomies of Scope
Dixon, Huw David - C.E.P.R. Discussion Papers - 1992
This paper considers the incentives of oligopolistic firms to diversify into technologically related markets when there are diseconomies of scope. There is a rent-extraction incentive for firms to adopt flexible technologies, which enable them to enter technologically related markets, thereby...
Persistent link: https://www.econbiz.de/10005662260
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Entrepreneurial Learning, the IPO Decision, and the Post-IPO Drop in Firm Profitability
Pástor, Luboš; Taylor, Lucian; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2007
whether to take the firm public. In this decision, the entrepreneur trades off diversification benefits of going public …
Persistent link: https://www.econbiz.de/10005666477
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The Cost of Diversity: The Diversification Discount and Inefficient Investment
Rajan, Raghuram G; Servaes, Henri; Zingales, Luigi - C.E.P.R. Discussion Papers - 1998
In a simple model of capital budgeting in a diversified firm where headquarters have limited power, we show that funds are allocated towards the most inefficient divisions. The distortion is greater, when the investment oppotunities of the firm’s divisions are more diverse. We test these...
Persistent link: https://www.econbiz.de/10005666944
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Optimal Diversification
Gomes, Joao F; Livdan, Dmitry - C.E.P.R. Discussion Papers - 2002
In this Paper we show that the main empirical findings about firm diversification and performance are actually … consistent with the optimal behavior of a firm that maximizes shareholder value. In our model, diversification allows a firm to … allows us to examine several aspects of the relationship between firm diversification and performance in a very general …
Persistent link: https://www.econbiz.de/10005667077