Speculative trading and stock prices
Subtitle: evidence from Chinese A-B share premia
By: Jianping Mei, Jose Scheinkman, Wei Xiong.
Contributors: Scheinkman, José Alexandre.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11362; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11362.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Speculation -- China.; Stocks -- Prices -- China.
Description: "The market dynamics of technology stocks in the late nineties has stimulated a growing body of theories that analyze the joint effects of short-sales constraints and heterogeneous beliefs on stock prices and trading volume.  This paper examines implications of these theories using a unique data sample from China, a market with stringent short-sales constraints and perfectly segmented dual-class shares.  The identical rights of the dual-class shares allow us to control for stock fundamentals.  We find that trading caused by investors' speculative motive can help explain a significant fraction of the price difference between the dual-class shares"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.