We investigate the reaction of bank equity returns to changes in the relevant Federal Reserve (Fed) policy tool, which is the federal funds rate during periods of interest rate targeting and the discount rate during periods of reserves targeting. Three distinct policy periods from 1974 to 1996...

Our objective is to investigate the short-term over- or underreaction of six U.S. stock market indexes. We find evidence of a one-day underreaction for winners (days on which an index experiences abnormally high returns) and losers (days on which an index experiences abnormally poor...

The response of nineteen national stock market indexes to large movements in a world index is tested separately from a local investor and a U.S. perspective. There is substantial evidence that some countries overreact while others underreact. To the extent that the over- and underreactions can...