Reputational herding has been considered as a driving force behind economic and financial forecasts clustered around consensus values. Strategic coordination can consequently explain poor performances of prediction markets as resulting from the distinct incentives that forecasters face. While...

Experimental research found contradictory results regarding the occurrence of informational cascades. Whereas Anderson and Holt [Anderson, L.R., Holt, C.A., 1997. Information cascades in the laboratory. The American Economic Review 87, 847-862] confirmed the model of Banerjee [Banerjee, A.V.,...

Since 2011 China attempts to internationalise its currency by allowing more cross-border trade to be settled in renminbi (RMB). Via the so-called RMB Trade Settlement Scheme trade partners are able to pay and to be paid in RMB offshore. Due to the mostly closed mainland (onshore) market, both...

As the future movements of financial time series like the European Central Bank’s benchmark rate are exposed to uncertainty, financial market participants regularly have to rely on professional analysts’ forecasts. Not surprisingly—and for decades already—the quality of survey forecasts...

This paper examines intraday stock price and trading volume effects caused by ad hoc disclosures in Germany. The evidence suggests that the stock prices react within 30 minutes after the ad hoc disclosures. The adjustment of the trading volume needs even more time. We find no evidence for...

IT support and especially IT innovations represent crucial success factors in investment management and financial decision making. The application of machine learning techniques for intraday decision support constitutes such a crucial factor, but existing literature has not been capable of...

Developing forecasting models for estimating the behavior of capital markets is one of the most challenging tasks in financial decision support system research. Besides time series models, artificial neural network approaches and genetic algorithms, text mining technologies represent a promising...