Socially Amplified Trading? [PREMIUM]
How do relevant electronic social networks affect individual investing? In their March 2012 paper entitled “Facebook Finance: How Social Interaction Propagates Active Investing”, Rawley Heimer and David Simon investigate the propagation o...
Individual Investors in Bull and Bear Markets [PREMIUM]
How do individual investors adjust trading behaviors during bull and bear markets? Are any such adjustments advantageous? In their December 2011 paper entitled “Don’t Confuse Brains with a Bull Market: Attribution Bias, Market Condition, and Tr...
Doom and the Stock Market
...there is no clear connection between proximity of doom for humanity and stock market performance.
Quarterly Earnings Announcement Reversals [PREMIUM]
Are firm earnings announcements bound to confound stock traders? In their November 2011 paper entitled “Systematic Noise and News-Driven Return Reversals”, Eric So and Sean Wang examine trading behavior around quarterly earnings announcemen...
Animal Spirits Neuroscience
Is science making progress in deconstructing the animal spirits at play in financial markets? In the October 2011 draft of his chapter entitled “Fear, Greed, and Financial Crises: A Cognitive Neurosciences Perspective”, Andrew Lo explores ...
Refined Short-term Reversal Strategies [PREMIUM]
Does short-term (one-month) stock return reversal persist? If so, is there a best way to refine and exploit it? In the September 2011 version of their paper entitled “Decomposing the Short-term Return Reversal”, Zhi Da, Qianqiu Liu and Erns...
Lunar Cycle and Stock Returns
Does the lunar cycle affect the behavior of investors/traders, and thereby influence stock returns? In the August 2001 version of their paper entitled “Lunar Cycle Effects in Stock Returns” Ilia Dichev and Troy Janes conclude that: “r...
Dividend Month Premium [PREMIUM]
Do investors focus on dividends, thereby elevating associated stock prices as ex-dividend date approaches? In the September 2011 draft of their paper entitled “The Dividend Month Premium”, Samuel Hartzmark and David Solomon examine the pri...
Announcement Tone and Short-term Reaction to Earnings News [PREMIUM]
Does the semantic tone of an earnings announcement, as measured independently of the level of earnings surprise, affect stock price reaction. In his September 2011 paper entitled “Short-term Reactions to News Announcements”, Michal Dzielin...
Stock Spikes Around CEO Interviews [PREMIUM]
Do investors in aggregate respond to “staged” CEO visibility? In the August 2011 update of their paper entitled “CEO Interviews on CNBC”, Felix Meschke and Andy Kim investigate whether planned interviews with CEOs on financial t...
Overview of Research on Individual Investors
What does the body of academic research say about the stock trading behaviors and outcomes for individual investors? In their June 2011 paper entitled “The Behavior of Individual”, Brad Barber and Terrance Odean survey four areas of empiric...
A Few Notes on Investing and the Irrational Mind
In his 2011 book Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss, author Robert Koppel posits that investing has “less to do with the science of computation and more to do the art of managing ...
