Abstract By applying daily returns of 35,328 stocks traded on 69 countries over 10 years, this study makes three main contributions to the literature herding behavior in global stock markets. First, I extend earlier studies international markets order conduct a broader test for validation phenomenon. Second, evaluate whether is different among developed, emerging, and frontier Third, employ measures capture effect avoid biases empirical tests. Evidence shows that Christie Huang [1995] linear...

The author constructs a direct measure of investor attention toward global benchmark indices using Google search volume and empirically examines its impact on stock returns. documents significant decrease in index returns following an increase attention. This result is consistent with the recognition hypothesis (Merton [1987 Merton, R. "A Simple Model Capital Market Equilibrium Incomplete Information." Journal Finance, 42, (1987), pp. 483–510.[Crossref], [Web Science ®] , [Google Scholar]])...

In the extant literature of business cycle predictions, signals for turning points are generally issued with a lag at least 5 months. this paper, we make use novel and timely indicator—the Google search volume data—to help to improve timeliness point identification. We identify multiple query terms capture real‐time public concern on aggregate economy, credit market, labor market condition. incorporate indices in Markov‐switching framework successfully “nowcast” peak date within month that...

Using the tick-by-tick transaction data for 41 stock markets, authors examine whether investors follow each other into and out of same countries, dubbed country herding. Empirical evidence is sought to substantiate existence herding in international markets regardless retail institutional investors. Additional tests suggest that not simply a reflection herding, industry market co-movements. Finally, findings demonstrate may be partly driven by investigative stresses, investor sentiments.

Purpose For most companies, growth measures such as asset are positively correlated with accrual measures. Just like investment in fixed assets, current represents one form of and is an integral part a firm’s business growth. This makes it difficult to distinguish between the growth-based earnings quality-based interpretations effects, because high accruals can represent both inflated earnings. The purpose this paper add literature by examining issue that has not received much attention:...

This study uses high-frequency intraday data to investigate country-level herding behavior among global market investors and finds strong evidence of significant at the country level. Specifically, we find that traders tend follow each other from one another. Moreover, is a combination informed uninformed herding, contribution approximately five times greater than its counterpart. Informed primarily motivated by correlated signals, whereas influenced momentum trading, style investing, pressure.

Ending-digit effects describe the presence of abnormal returns when ending digits stock prices are one penny below or above zero-ending round number. Using data from 68 countries, I find positive surpass threshold (i.e. digit is 1) but negative drop same 9). My findings survive alternative robustness checks. This ending-digit effect more prominent in countries with active innovation and better governance.

I document a new channel that can be used by managers who take advantage of investors preference for logo colours to influence their perception the financial reports and thus indirectly affect firm value. Evidence suggests firms having warm as major colour, fewer in logo, recognizable elements are associated with lower earnings management higher My findings remain stable across different robustness checks.

Abstract The access to fundamental information prompts traders buy or sell a security collectively until its market price arrives at the equilibrium value, which this paper terms informed herding. Using large sample covering tick‐by‐tick data, we conduct cross‐country study examine whether herding pervades in international markets. empirical finding lends strong support global presence of Moreover, effect remains significant despite using various robustness checks. Eventually, discover that...

Abstract In this article I investigate whether the round‐number heuristic affects investors' selection of trading time in international market. document existence round‐time biases, as evidenced by activities intensifying at second 0 1 min. Further examination suggests that anomaly is likely driven algorithmic from institutional investors. Consistent with inference, demonstrate transactions carry value‐relevant information, have predictive power for intraday‐level returns, and yield positive...

Abstract Based on intraday data across 41 markets, this study examines whether informed traders exploit trade‐size clustering. Clustering trades are documented to predict price movements, generate perpetual return impact, and improve informational efficiency. Collectively, these findings suggest that the clustering strategy is leveraged by cover up their activities in global markets. In addition, cross‐country analysis indicates larger market capacity better legal protection, as two...

This article examines the impact of warrant trading on tracking errors in China-focused exchange-traded funds (ETFs) listed Hong Kong. We followed Shin and Soydemir (2010) adopting average absolute differences, standard from regression analysis, deviation return differences to measure before after first-time issuance. Our results indicate that ETFs are amplified listing, implying derivative products encourage speculative investment underlying assets. used control-sample verify further our...

Abstract This study begins to verify whether delayed informed trades occur surrounding an earnings release. Next, we discover that post‐event investor opinions tend diverge when more are after the As additional empirical evidence indicates, investors likely compelled postpone their due information complexity, stock illiquidity, and institutional competition. Finally, such a documented association between opinion divergence remains robust placebo test, endogeneity problem, large‐cap sample bias.