This paper analyses the preferences of CoCo bond buyers and sellers assuming that they are mutually exclusive, prefer bonds with higher safety-adjusted returns. We take into account both issuing banks’ characteristics investigate differences in responses investors low (25th), medium (50th) high (75th) percentiles based on find those can be characterised as growth, value active investors, respec...

Because in the theory of economics, the value of a company is based on the current value of future cash flows and profit is used as a substitute for cash flows, profit forecasting is of particular importance. In the research, the effect of rounding and revision in predicting earnings per share on the investors' attention in Iran has been investigated. After designing the investors' attention as...

Using data from a new field experiment in South Korea, we study how information from virtual communities such as stock message boards influences investors’ trading decisions and investment performance. Motivated by recent studies in psychology, we conjecture that investors would use message boards to seek information that confirms their prior beliefs. This confirmation bias would make them more...

In this study, we explore whether Wikipedia plays a governance role in the financial market by reducing the information disadvantage of individual investors. We hypothesize that the aggregation of information on Wikipedia enables individual investors to collectively monitor insiders and institutional investors. Using the creation of a firm Wikipedia page as an information event, our empirical r...

In this research, we employ Agent-Based Modeling to analyze how asset prices are affected by investors’ Behavior. We construct a virtual financial markets that contains several types of investors: fundamentalists and non-fudamentalists. In this analysis, we place focus on the influence of overconfident investors on financial markets. As a result of intensive analysis, we find that overconfident...

At the time of an initial public offering, shares in a firm are typically held by venture capitalists, insiders, corporate investors, and angel investors. We examine the role of angel investors in the IPO process. We find that angel investors provide equity capital in industries that venture capitalists are less likely to serve and that shareholders in angel backed IPO firms are more likely to ...

This paper examines the effect of unexpected exchange rate movements on U.S. shareholder wealth. Empirical results based on a sample of 634 U.S. multinational firms (1) confirm previously reported evidence that the disaggregation of the worldwide tradeweighted U.S. dollar exchange rate index into seven regionspecific trade-weighted indices increases the precision and significance of exposure es...

-In this study, it is discussed about the mutual fund knowledge and awareness among the investors with a special reference to Chennai city. It is difficult to selective group the investors in a sample as such the population of Chennai city is large in number. Compared to earlier days the investment options are changing from risk free to riskier investments. The analyses also shows that compared...

Prior research debates focus on whether investors are smart enough to invest in funds that subsequently outperform. This paper documents a robust smart money effect among small fund investors who invest in the top performing funds, even after controlling for the momentum factor argued by Sapp and Tiwari (2004). I further explore the reason for the smart money effect and find that such outperfor...

After negative shocks, investors with short trading horizons are inclined or forced to sell their holdings to a larger extent than investors with longer trading horizons. This may amplify the effects of market-wide shocks on stock prices. We test the relevance of this mechanism by exploiting the negative shock caused by Lehman Brothers’ bankruptcy in September 2008. Consistent with our conjectu...