ABSTRACT The existence and the enforcement of insider trading laws in stock markets is a phenomenon 1990s. A study 103 countries that have reveals exist 87 them, but enforcement—as evidenced by prosecutions—has taken place only 38 them. Before 1990, respective numbers were 34 9. We find cost equity country, after controlling for number other variables, does not change introduction laws, decreases significantly first prosecution.

We analyze financial statements from 34 countries for the period 1984–1998 to construct a panel data set measuring three dimensions of reported accounting earnings each country: aggressiveness, loss avoidance, and smoothing. hypothesize that these are associated with uninformative or opaque earnings, so we combine measures obtain an overall opacity time-series measure per country. then explore whether our affect two characteristics equity market in return shareholders demand how much they...

Motivated by a theoretical model, we examine for 43 countries whether it is policy or uncertainty that affects technological innovation more. Innovation activities, measured patent-based proxies, are not, on average, affected which in place. however, drop significantly during times of national elections. The greater more influential innovations (citations the right tail, exploratory rather than exploitative innovations) and innovation-intensive industries. We use close presidential elections...

Journal Article Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study Get access Utpal Bhattacharya, Bhattacharya Search for other works by this author on: Oxford Academic Google Scholar Andreas Hackethal, Hackethal Simon Kaesler, Kaesler Benjamin Loos, Loos Steffen Meyer The Review of Studies, Volume 25, Issue 4, April 2012, Pages 975–1032, https://doi.org/10.1093/rfs/hhr127 Published: 01 2012

Journal Article Insiders, Outsiders, and Market Breakdowns Get access Utpal Bhattacharya, Bhattacharya University of Iowa, USA Search for other works by this author on: Oxford Academic Google Scholar Matthew Spiegel Columbia University, Graduate School Business, 414 Uris Hall, New York, NY 10027, The Review Financial Studies, Volume 4, Issue 2, April 1991, Pages 255–282, https://doi.org/10.1093/rfs/4.2.255 Published: 05 May 2015

Abstract We read all news items that came out between 1996 and 2000 on 458 Internet initial public offerings (IPOs) a matching sample of non-Internet IPOs (a total 171,488 items) classify each item as good news, neutral or bad news. first document the media were more positive for in period dramatic rise share prices negative fall prices. then hype is unable to explain bubble: A 1,646% difference exists returns stocks from January 1, 1997, through March 24, (the market peak), can only 2.9% that.

Using a comprehensive sample of 2,361 public U.S. corporate defendants and 715 foreign in federal courts the period 1995–2000, we find that market reaction at announcement lawsuit is less negative for than defendants. We this rational; firms are likely to lose when control year, industry, type litigation, size, profitability. This finding may still reflect selection bias. bias, results remain unchanged. thus cannot rule out have home court advantage courts.

ABSTRACT We analyze the investment behavior of affiliated funds mutual (AFoMFs), which are that can only invest in other family, and offered by most large families. Though never mentioned any prospectus, we discover AFoMFs provide an insurance pool against temporary liquidity shocks to family. show that, though family benefits because avoid fire sales, cost this is borne investors AFoMFs. The paper thus uncovers some hidden complexities fiduciary responsibility fund

This paper argues, both theoretically and empirically, that sometimes no securities law may be better than a good is not enforced. The first part of the formalizes sufficient conditions under which this happens for any law. second shows specific – prohibiting insider trading satisfy these conditions. third takes prediction to data. We find cost equity actually rises when some countries enact an law, but do enforce it.

This paper provides evidence that stock traders focus on round numbers as cognitive reference points for value. Using a random sample of more than 100 million transactions, we find excess buying (selling) by liquidity demanders at all price one penny below (above) numbers. Further, the size buy–sell imbalance is monotonic in roundness adjacent number (i.e., largest to integers, second-largest half-dollars, etc.). Conditioning path, much stronger when ask falls (bid rises) reach integer it...

ABSTRACT We arranged for trained undercover men and women to pose as potential clients visit all 65 local financial advisory firms in Hong Kong. At planning firms, but not at securities were more likely than receive advice buy only individual or securities. Female who signaled high confidence, risk tolerance, a domestic outlook especially this suboptimal advice. Our theoretical model explains these patterns result of statistical discrimination interacting with advisors’ incentives....

We analyze the financial statements of 58,653 firm-years from 34 countries for period 1985-1998 to construct a panel data set measuring three dimensions earnings opacity each country - aggressiveness, loss avoidance, and smoothing. combine these obtain an overall time-series measure per country. then explore whether affects two equity market in return shareholders demand how much they trade. While not all results are consistent our individual dimensions, tests document that, after...

We model a family business as household operating production technology in which the household's human capital is specific skill. Each generation can either bequeath and skill to next or sell through financial intermediary revenue. Using dynamic model, we analyze how imperfections primary markets affect evolution of businesses. Whether recourse external financing exists not, our predicts that businesses are bigger, last longer, have lower investment rates economies with less developed...

Why is the mere announcement of an open-market share repurchase program, which involves no commitment to purchase shares, regarded as good news by market? We develop a theoretical model resolve this puzzle. The predicts that firms with large underpricing can attract attention from speculators announcing repurchases, and subsequent trades these lead value corrections. Firms small underpricing, however, cannot have use costly repurchases value-correcting signal. then provide empirical evidence...

Do superstitious traders lose money? We answer this question in the context of trading Taiwan Futures Exchange, where we exploit Chinese superstition that number 8 is lucky and 4 unlucky. find individual investors, but not institutional submit disproportionately more limit orders at than 4. This imbalance, defined as “superstition index” for each investor, positively correlated with losses. Superstitious investors money mainly because their bad market timing stale orders. Nevertheless,...

Using data from a large German brokerage, we find that individuals investing in passive exchange-traded funds (ETFs) do not improve their portfolio performance, even before transaction costs. Further analysis suggests this is because of poor ETF timing as well selection (relative to the choice low-cost, well-diversified ETFs). An exploration investor heterogeneity shows though investors who trade more have worse timing, no groups benefit by using ETFs, and will lose ETFs.

Working with one of the largest brokerages in Germany, we record what happens when unbiased investment advice is offered to a random set roughly 8,000 brokerage's several hundred thousand active retail customers. We find that investors who most need financial are least likely obtain it. The do (about 5%), however, hardly follow advice, and so not improve their portfolio efficiency much. Overall, our results imply mere availability necessary but sufficient condition for benefiting investors.

Abstract We construct a mortality table for U.S. public companies during 1985–2006. find that the age-specific rates of firms initially increase, peaking at age three, and then decrease with age, implying first 3 years life are critical. Financial intermediaries involved around “public birth” firm (e.g., venture capitalists (VCs) high-quality underwriters) associated lower rates, sometimes up to 7 after initial offering (IPO). VCs reduce more through natal financial care than selection,...

We read all news items that came out between 1996 and 2000 on 458 internet IPOs a matching sample of non-internet - total 171,488 classify each item as good news, neutral or bad news. first document the media was more positive for in period dramatic rise share prices, negative fall prices. then hype is unable to explain bubble: there 1646% difference returns stocks from January 1, 1997 through March 24, (the market peak), can only 2.9% that.