We explore the link between momentum and retail investing via an identification strategy in China, where retail investors dominate. We argue that due to a roundlot restriction, small retail investors are less likely to hold and trade stocks with high nominal prices, and find supporting evidence....

Based on a market division experiment (which divides the market into a basic layer and an innovative layer) in China’s New Third Board, we employ a regression discontinuity design to study how firm visibility affects liquidity and valuation of thinly traded assets. We document that an increase...

Past studies typically have focused on whether people perceive more rare risk after experiencing catastrophic disasters. We show that people can also feel less risk with unexpected “lucky” disaster experience. By exploring a novel identification strategy based on households’ expectations,...

The information environment and investor order strategy are both important determinants when comparing the market performance of trading mechanisms. However, less is known about what happens when trading mechanisms are compared. In this paper, we link the information environment, trading...

Using an intraday transaction dataset with trader identity, we study foreign and domestic investors' trading activities and investment performance ahead of open-ending events of Taiwanese closed-end funds. Simply buying the funds at a discount and holding until open-ending generates large...

This paper examines the diversification choices of top managers and their implications for the levels of portfolio equity incentives as well as for firms' financial policies. Standard portfolio theory should also apply to corporate managers and therefore excessive risk exposures to the firm...