We document a previously unknown source of information exploited by sophisticated institutional investors: the Freedom of Information Act, a law that allows for the full or partial disclosure of previously unreleased information and documents controlled by the United States government. Through our own FOIA requests, we uncover the identities of several large institutional investors, chiefly hed...

This paper analyses the general equilibrium effects on asset valuation and capital accumulation of an exogenous drop in the rate of return required by investors in a model of production with imperfectly competitive product markets. The model improves substantially on the standard perfectly competitive neo-classical framework, by dissociating the behavior of marginal and average q. It tracks mor...

This paper examines the preferences of foreign and dometic institutional investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger, widely dispersed firms and do not chase returns. However, we find evidence of strong differences in the behaviour of foreign and domestic institutional investors. Foreign investors prefer to buy private, liquid, young and gl...

Theory predicts that attribution bias creates overconfident traders and thus causes excessive trading in the market. This paper tests this prediction by comparing the trading behavior of individual investors in different market conditions. In a bull market, investors suffer more from attribution bias and therefore should be more overconfident and trade more excessively. Using the trading record...

In order to solve the problem of insufficient capital adequacy, haphazard internal control, the lower international competitiveness and others, the domestic commercial banks have introduced strategic investors. In order to study whether efficiency of introducing the strategic investors is improved, this paper carries out panel data regression analysis, using data of such banks as: the China Con...

T paper uses a formal model to study how evaluation costs affect competition for resources in strategic factor markets. It finds that relative scarcity may not always benefit resource sellers. Rather, when competition among resource investors passes a certain threshold intensity, miscoordination among investors increases to the point that sellers’ expected profits decline. This paper extends th...

Information asymmetry presents a challenge to equity crowdfunding just as in other markets for equity capital. Investors are less likely to finance startups when it is difficult to assess quality. We argue that syndicates reduce market failures caused by information asymmetry by shifting the focal investment activities of the crowd from startups to lead investors. Syndicates align incentives of...

Why don’t VCs eliminate excess demand for follow-on funds by raising fees? We propose a model of learning that leads to informational holdup. Current investors learn about skill whereas outside investors observe only returns. This gives current investors holdup power when the VC raises his next fund: Without their backing, no-one will fund him, as outside investors interpret the lack of backing...

We propose a unified model of limited market integration, asset-price determination, leveraging, and contagion. Investors and firms are located on a circle, and access to markets involves participation costs that increase with distance. Due to a complementarity between participation and leverage decisions, the market equilibrium may exhibit diverse leverage and participation choices across inve...

one of the important factors in making financial decisions is perceptual biases. they influence decisions at the time of exchanging stocks. the present research means to identify these common biases among investors and show its relation with their personality. doing this research, the statistic society is considered unlimited thus a random group of 200 investors from tehran stock exchange has b...