Showing 1 - 4 of 4
We examine overconfidence among equity mutual fund managers. While overconfidencehas been extensively documented among retail investors, evidence fromprofessional investors is scarce. Consistent with theories of overconfidence, we findthat fund managers trade more after good past performance....
Persistent link: https://www.econbiz.de/10009284853
Recent empirical research suggests that measures of investor sentimenthave predictive power for future stock returns over the intermediate and longterm. Given the widespread publication of sentiment indicators, smart investorsshould trade on the information conveyed by such indicators and...
Persistent link: https://www.econbiz.de/10009302612
This paper investigates whether investor sentiment can explain stock returns on theGerman stock market. Based on a principal component analysis, we construct a senti-ment indicator that condenses information of several well-known sentiment proxies. Weshow that this indicator explains the return...
Persistent link: https://www.econbiz.de/10009302647
The overvaluation hypothesis (Miller 1977) predicts that a) stocks are overvalued inthe presence of short selling restrictions and that b) the overvaluation increases in the degree ofdivergence of opinion. We design an experiment that allows us to test these predictions in thelaboratory. The...
Persistent link: https://www.econbiz.de/10009302608