Country-specific sentiment and security prices

• 成果类型: Article
• 署名作者: Hwang, Byoung-Hyoun
• 署名单位: Purdue University System; Purdue University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2010.10.020
• 发表日期: 2011
• 页码: 382-401
• 关键词: Investor sentiment; Country popularity

摘要

I study the effect of country-specific sentiment on security prices. I provide evidence that a country's popularity among Americans affects US investors' demand for securities from that country and causes security prices to deviate from their fundamental values. Moreover, I find that country popularity is positively associated with the intensity of US cross-border mergers and acquisitions activity, suggesting that country popularity also affects firms' investment decisions. (C) 2010 Elsevier B.V. All rights reserved.