Investor sentiment in the stock market
By: Malcolm Baker, Jeffrey Wurgler
Contributors: Wurgler, Jeffrey; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13189; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13189.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "Real investors and markets are too complicated to be neatly summarized by a few selected biases and trading frictions.  The "top down" approach to behavioral finance focuses on the measurement of reduced form, aggregate sentiment and traces its effects to stock returns.  It builds on the two broader and more irrefutable assumptions of behavioral finance -- sentiment and the limits to arbitrage -- to explain which stocks are likely to be most affected by sentiment.  In particular, stocks of low capitalization, younger, unprofitable, high volatility, non-dividend paying, growth companies, or stocks of firms in financial distress, are likely to be disproportionately sensitive to broad waves of investor sentiment.  We review the theoretical and empirical evidence for these predictions"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/30/2007.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.