Country-specific sentiment and security prices

Byoung Hyoun Hwang

doi:10.1016/j.jfineco.2010.10.020

Country-specific sentiment and security prices

Byoung Hyoun Hwang^*

^*Corresponding author for this work

Purdue University

Research output: Contribution to journal › Article › peer-review

74 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	382-401
Number of pages	20
Journal	Journal of Financial Economics
Volume	100
Issue number	2
DOIs	https://doi.org/10.1016/j.jfineco.2010.10.020
Publication status	Published - May 2011
Externally published	Yes

ASJC Scopus Subject Areas

Accounting
Finance
Economics and Econometrics
Strategy and Management

Keywords

Country popularity
Investor sentiment

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10.1016/j.jfineco.2010.10.020

Cite this

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title = "Country-specific sentiment and security prices",

abstract = "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.",

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AB - 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.

KW - Country popularity

KW - Investor sentiment

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M3 - Article

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JO - Journal of Financial Economics

JF - Journal of Financial Economics

IS - 2

ER -

Country-specific sentiment and security prices

Abstract

ASJC Scopus Subject Areas

Keywords

Access to Document

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