We survey the textual sentiment literature, comparing and contrasting the various information sources, content analysis methods, and empirical models that have been used to date. We summarize the important and influential findings about how textual sentiment impacts on individual, firm-level and...

In this paper, we develop a model in which overconfident market participants and rational speculators trade against trend-chasers. We show that the growth and the burst of a financial bubble stem from positive feedback trading. However, the presence of overconfident traders and the risk aversion...

In the following paper we analyze the strategic competition between fast and slow traders. The model of Kyle (1985) is adapted to analyze the effect of speed in such a model. A High Frequency Trader (HFT) is defined as a trader that has the ability to react to information faster than other...

We use the presence of a Wikipedia article for initial public offering (IPO) firms to test theories of information asymmetry and investor awareness. While we find limited support for the former, our results provide strong support for theories of investor awareness. Specifically, IPO firms with a...

We examine the performance of the buy-write option strategy (BWS) on the Australian Stock Exchange and analyse whether such an investment opportunity violates the efficient market hypothesis on the basis of its risk and returns. This study investigates the relationship between buy-write...

Using analysts' stock recommendations this paper shows gender heterogeneity in investment advice. The odds for female financial analysts to issue optimistic recommendations are much lower than the odds for male analysts. However, an investor cannot profit from the observed gender differences....

The expectations management literature has so far focused on firms meeting the analyst consensus forecast — the expectations of analysts as a group — at earnings announcements. In this study we argue that investors may use individual analyst forecasts as additional benchmarks in evaluating...

Using institutional equity trading data, we find that a set of small institutional investors consistently follow credit ratings issued by an investor-paid rating agency in their trading decisions. Although rating information is credit related, we find that these followers often respond more...

Purpose: Retail investors use information provided by mutual fund rating agencies to make investment decisions. This paper examines whether the ratings provide useful information to retail investors by analyzing the rating migration and closure risk of mutual funds that received Morningstar's...

We examine how the media influences retail trade and market returns during the “quiet period” that follows a firm's IPO. We find that more media coverage during this period is associated with more purchases by retail investors and that such purchases are attention-driven, rather than...