This paper discusses if the psychological changes of investors would influence mutual funds from the perspective of behavioral finance. In other words, we assess the psychological state of investors from the deepest psychological factors of greed and fear, and discuss whether the psychological...

Previous studies show that the price transmission between foreign stocks and their American Depositary Receipts (ADRs) relies not only on current but also on past information such as individual stock returns, market returns and changes in exchange rates. In addition to these factors, this study...

This study has two objectives: to examine the relationship between managerial sentiment and corporate investment and to examine the relationship between investment and firm value. We use a sample of Taiwanese firms and find that an optimal level of investment that maximizes a firm's value does...

By using the relationship between high sentiment and momentum, the main purpose of this paper is to investigate if psychological biases of investors have an influence on behavioral biases. We find that in the China stock market, high sentiment of loser groups is correlated with contributors of...

The main purpose of this paper is to examine whether "newly raised funds" (NRFs) can actually achieve the performance targets. The targets are usually provided to investors by the fund companies at the time when such new funds are introduced. Our results show that the performance of the new...

<title>Abstract</title> This paper examines the critical determinants of American depository receipt (ADR) returns before and after domestic stock seasoned equity offerings (SEOs) for Asian and Latin American emerging economies during 1990--2007, which has never been probed in related issues. We employ the...

This paper examines firm-level valuations by financial analysts and by the market, using a traditional vector error-correction model (VECM) or threshold vector error-correction model (TVECM) to obtain the information shares of the two parties. While investors' valuations lead financial analysts'...

This paper investigates whether and how futures market sentiment and stock market returns heterogeneously affect the trading activities of institutional investors in the spot market in Taiwan. Our empirical results suggest that foreign investors are net sellers whenever futures market sentiment...