This study shows that individual investors prefer to invest in high dividend yield stocks and in dividendpaying firms whereas relatively lower-taxed institutional investors tend to prefer low dividend yield stocks and non-paying firms. Consistent with Brennan and Thakor’s [Brennan, M. J., & A. V. Thakor. (1990). Shareholder preferences and dividend policy. Journal of Finance, 45, 993–1018] adve...

The authors model trading by foreign and domestic investors in developed-country equity markets. The key assumptions are that (i) both the foreign and domestic investor populations contain investors of different sophistication, and (ii) investor sophistication matters for performance in both public equity and private off-market investments. A quantitative model with these assumptions delivers a...

Order Flow Patterns around Seasoned Equity Offerings and their Implications for Stock Price Movements In this study, we employ order imbalance measures to provide evidence that there exists an individual/institutional dichotomy in reactions to seasoned equity offerings (SEOs). The evidence supports the notion that small, possibly näıve, individual investors keep trading SEO stocks aggressively ...

Economists have used the mechanism of interjurisdictional competition to explain how decentralization affects the degree of property rights protection. This fails however to account for another significant question: In China, can the local decentralization from the provincial level to the prefectural (county) level be more effective in protecting the private property rights of investors, especi...

We investigate the way investors react to prior gains/losses. We use a new and unique dataset with detailed information on investors’ various components of wealth, income, demographic characteristics and portfolio holdings identified at the stock level. We test the theory of loss aversion against the alternative provided by standard utility theory and the house-money effect. We show that, on a ...

Article history: Received 12 September 2014 Accepted 20 January 2015 Available online 24 January 2015 We investigate the daily short-selling by foreign investors and their impact on stock price, liquidity, and volatility in the Korean stock market. From January 1, 2006, to May 31, 2010, we find that the majority of short-selling is performed by foreign, rather than by domestic, investors and th...

Grossman (1976) shows how market prices aggregate private information. In this paper I show how trading volume helps investors to interpret the aggregate information in the price. I construct a model where investors trade for two reasons: private information and risk sharing. When trading volume is high, investors know that private signals are dispersed. They therefore weight the market price h...

The fast development in computing and communication has strongly changed the dynamics of financial markets. More people are trading online through the Web instead of using full-service brokerages. Many online financial services have given investors new opportunities to trade stocks and access real-time market information efficient way. But, very few investors in UAE are familiar and use these s...

Our study explores the effect of market volatility expectations, captured by the implied volatility index (VIX), aka ‘‘investors’ fear gauge,’’ on investors’ reactions to analyst recommendation revisions. We find that positive (negative) excess returns following recommendation upgrades (downgrades) are stronger when accompanied by daily VIX decreases (increases). A rational explanation for the ...

Knowledge of financial management is important in life so that everything planned can follow the schedule. With knowledge management, related to finance needs be arranged ensure long term avoid pitfalls. Financial literacy plays an role managing expenses they controlled according plan. enhance ability producing individuals who wisely plan financially every aspect life. The objectives study are ...