Using data for 193 equity funds in Taiwan, we examine whether fund managers behave overconfidently. We show that the higher the fund performance, the more that trading occurs in the next period. In addition, such trading may hurt subsequent performance, although the evidence is marginal. Our...

Real exchange rate changes affect bonds differently from stocks. Bonds, having relatively fixed income streams, reflect only an interest rate effect, while stocks reflect a conjunction of interest rate and cash flow effects. If exchange rate changes contain information about future interest...

The Taiwan Stock Exchange (TSEC) is an electronic order-driven market without designated market makers. By turnover rate the TSEC is the most liquid market in the world. This paper is about the liquidity providers on the TSEC. Our analysis sheds light on the design of trading mechanism of an...

Using a unique data set, we find that large individual investors are successful at picking stocks. Large individual investors' correlated trades can not only move synchronous stock prices but also positively predict future returns. More importantly, they tend to trade before major earnings...

Using data from 74 countries between the years of 1960 to 2008, we performed panel regressions and logit models on political settings and the economic situation to identify which factors influence deposit insurance coverage and the probability of changes in coverage. Results reveal that...