We study the information aggregation process in a laboratory financial market where traders have access to costly private and free public imperfect information. The disclosure provokes (i) crowding-out effect on traders’ demand, (ii) overreaction signal, (iii) deterioration price informativeness. show that reduction informativeness is direct consequence of overweighting when aggregated prices. ...

In this paper, I construct a novel composite sentiment indicator which captures the irrational beliefs of general population in Germany. This is used to demonstrate that public responsible for temporary overreaction aggregate German stock market, but also its narrower segments embodied four important equity indices from DAX family. My results show population-wide work as contrarian predictor fu...

We document that stocks have optimistic (pessimistic) consensus recommendations and are currently held by many short-term institutions exhibit large stock-return reversals: Their past outperformance (underperformance) is followed negative (positive) future alphas. The predictable return reversals originate from overreaction to recommendation releases the correction of these overreactions around...

The Covid-19 pandemic has had an impact on various aspects of life, including the capital market which caused a negative response most stock exchanges around world, Indonesia Stock Exchange. Effecieny Market Hypothesis (EMH) explains that price will always be reflected from information available in or investors tend to rational. However, dramatic events such as COVID-19 allow overreact. results...

ABSTRACT We apply the moderated confidence hypothesis (MCH) to investigate overreaction and underreaction in intra-industry earnings information transfers an international setting. MCH predicts that late announcing firms' investors overreact (underreact) early industry peers' news when is imprecise (precise) signals of earnings. Consistent with this notion, we find a large sample firms. To exte...

This article aims to uncover the effects of COVID-19 pandemic on energy markets in terms stock indexes, futures, ETFs, and implied volatility indexes. We model demonstrate various phases outbreak (COVID-19) market. COVID-19-induced uncertainty indicators like growth infection, economic policy (EPU), infectious diseases market (IDsMV) have shown pronounced markets’ historical volatility. The ETF...