EconPapers    
Economics at your fingertips  
 

Regulating Irrational Exuberance and Anxiety in Securities Markets

Peter Huang
Additional contact information
Peter Huang: University of Pennsylvania Law School

Scholarship at Penn Law from University of Pennsylvania Law School

Abstract: This paper analyzes the regulatory implications of irrational exuberance and anxiety in securities markets. U.S. federal securities laws mandate the disclosure of certain information, but regulate only the cognitive form and content of that information. An important and unstudied question is how to regulate securities markets where some investors respond not only cognitively to the form and content of information, but also emotionally to the form and content of information. This paper investigates that question when some investors feel exuberance or anxiety that is unjustified by cognitive processing of the available information. This paper develops the implications for mandatory securities disclosure of irrational exuberance and anxiety.

Keywords: Anxiety; irrational exuberance; mandatory disclosures; securities regulation (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk, nep-law and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://lsr.nellco.org/cgi/viewcontent.cgi?article=1016&context=upenn/wps (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bep:upennl:upenn_wps-1016

Access Statistics for this paper

More papers in Scholarship at Penn Law from University of Pennsylvania Law School
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2025-03-19
Handle: RePEc:bep:upennl:upenn_wps-1016