Country-specific sentiment and security prices

Byoung-Hyoun Hwang

Journal of Financial Economics, 2011, vol. 100, issue 2, 382-401

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.

Keywords: Investor; sentiment; Country; popularity (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (48)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:100:y:2011:i:2:p:382-401

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