From 1992 to 2011, average R2 increased from 0.17 to 0.47. During this period, passive financial institutions also grew their ownership from 30 to 50% of the market. Passive investors do not perform fundamental research nor trade around firm-specific news, thus reducing the firm-specific...

Short sellers are routinely blamed for destabilizing stock markets by exacerbating deviations from fundamental values. In response, regulators periodically impose short sale constraints aimed at preventing excessive stock market declines. One explanation is that policy makers regard short...

The literature on short selling restrictions focuses mainly on a ban's impact on market efficiency, liquidity and overpricing. Surprisingly, little is known about the effects of short selling restrictions on institutional investors' trading behavior.Since institutional investors dominate mature...

Using a multi-national dataset, we investigate the herding behaviour of financial analysts. Our results across a range of different countries suggest that analysts consistently deviate from their true forecasts and issue earnings forecasts that are biased by anti-herding. Furthermore, the level...

We examine underlying factors that explain an exceptionally low stock market participation rate among Lithuanian households by carrying out a comprehensive survey of mass affluent individuals. The probit regression analysis of the survey results indicates that lack of financial literacy, low...

SEBI, the Indian securities market regulator has set a unique example for the entire world by introducing IPO grading in India 2006 on optional basis and further mandating it from May, 2007. The purpose of this grading was to provide retail investors with a ready-made assessment of the...

A well developed and competitive financial market with financial inclusion is a must, if India has to emerge as a strong knowledge based economy. The transformation of Indian equity market, that till 1990s, was plagued with inefficiency with respect to trading, settlement and surveillance, and...

This paper investigates how heterogeneous sentiments and perspectives expressed in public online media about the abolition of the Chinese presidential term limit in 2018 may have caused a divergence in investor behavior between the U.S. and China. We document that sentiments expressed in social...

There are many studies on estimating retail investors in Indian Equity Market. However, each of them remains short on exact number. This paper is also an attempt to arrive at estimated number of retail investors in the Indian equity market and how it compares with rest of the world. We with our...

In 2007, the SEC eliminated the Form 20-F reconciliation requirement for cross-listed firms that prepare financial statements under IFRS (IFRS filers). We examine the effect of this elimination on investors' information acquisition decisions and how accounting information is used across multiple...