scholarly journals Socioeconomic Status and Macroeconomic Expectations

2019 ◽  
Vol 33 (1) ◽  
pp. 395-432 ◽  
Author(s):  
Sreyoshi Das ◽  
Camelia M Kuhnen ◽  
Stefan Nagel
Keyword(s):  
Socioeconomic Status ◽  
Stock Market ◽  
Durable Goods ◽  
Low Ses ◽  
Market Returns ◽  
Stock Market Returns ◽  
Oxford University ◽  
Editorial Decision ◽  
Business Conditions ◽  
Published Paper

Abstract We show that individuals’ macroeconomic expectations are influenced by their socioeconomic status (SES). People with higher income or higher education are more optimistic about future macroeconomic developments, including business conditions, the national unemployment rate, and stock market returns. The spread in beliefs between high- and low-SES individuals diminishes significantly during recessions. A comparison with professional forecasters and historical data reveals that the beliefs wedge reflects excessive pessimism on the part of low-SES individuals. SES-driven expectations help explain why higher-SES individuals are more inclined to invest in the stock market and more likely to consider purchasing homes, durable goods, or cars. Received November 13, 2017; editorial decision February 12, 2019 by Editor Wei Jiang. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

scholarly journals Resiliency of Environmental and Social Stocks: An Analysis of the Exogenous COVID-19 Market Crash

2020 ◽  
Vol 9 (3) ◽  
pp. 593-621 ◽  
Author(s):  
Rui Albuquerque ◽  
Yrjo Koskinen ◽  
Shuai Yang ◽  
Chendi Zhang
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Web Site ◽  
Return Volatility ◽  
Stock Market Crash ◽  
Profit Margins ◽  
Oxford University ◽  
Operating Profit ◽  
Editorial Decision ◽  
Published Paper

Abstract The COVID-19 pandemic and the subsequent lockdown brought about an exogenous and unparalleled stock market crash. The crisis thus provides a unique opportunity to test theories of environmental and social (ES) policies. This paper shows that stocks with higher ES ratings have significantly higher returns, lower return volatility, and higher operating profit margins during the first quarter of 2020. ES firms with higher advertising expenditures experience higher stock returns, and stocks held by more ES-oriented investors experience less return volatility during the crash. This paper highlights the importance of customer and investor loyalty to the resiliency of ES stocks. (JEL G12, G32, M14) Received: June 3, 2020; editorial decision June 24, 2020 by Editor Andrew Ellul. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

scholarly journals The Equity Premium and the One Percent

2019 ◽  
Vol 33 (8) ◽  
pp. 3583-3623 ◽  
Author(s):  
Alexis Akira Toda ◽  
Kieran James Walsh
Keyword(s):  
Equity Premium ◽  
International Markets ◽  
Market Returns ◽  
Stock Market Returns ◽  
Tax Rate ◽  
Oxford University ◽  
Out Of Sample ◽  
The Rich ◽  
The One ◽  
Published Paper

Abstract We show that in a general equilibrium model with heterogeneity in risk aversion or belief, shifting wealth from an agent who holds comparatively fewer stocks to one who holds more reduces the equity premium. From an empirical view, the rich hold more stocks, so inequality should predict excess stock market returns. Consistent with our theory, we find that when the U.S. top ($\textrm{e.g.}$, 1%) income share rises, subsequent 1-year excess market returns significantly decline. This negative relation is robust to controlling for classic return predictors, predicting out-of-sample, and instrumenting inequality with estate tax rate changes. It also holds in international markets. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Relationship between Foreign Portfolio Investments (FPI), Domestic Institutional Investors, and Stock Market Returns in India

GIS Business ◽  
2017 ◽  
Vol 12 (6) ◽  
pp. 1-9
Author(s):  
Dhananjaya Kadanda ◽  
Krishna Raj
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Negative Relationship ◽  
Trading Strategies ◽  
Market Returns ◽  
Stock Market Returns ◽  
Foreign Portfolio Investment ◽  
Stock Market Return ◽  
Indian Stock Market ◽  
Feedback Trading

The present article attempts to understand the relationship between foreign portfolio investment (FPI), domestic institutional investors (DIIs), and stock market returns in India using high frequency data. The study analyses the trading strategies of FPIs, DIIs and its impact on the stock market return. We found that the trading strategies of FIIs and DIIs differ in Indian stock market. While FIIs follow positive feedback trading strategy, DIIs pursue the strategy of negative feedback trading which was more pronounced during the crisis. Further, there is negative relationship between FPI flows and DII flows. The results indicate the importance of developing strong domestic institutional investors to counteract the destabilising nature FIIs, particularly during turbulent times.

Causal Relationships and Short-Term Dynamics Between Oil Price and Stock Market Returns in Malaysia

2020 ◽  
Vol 24 (02) ◽  
pp. 1184-1204
Author(s):  
Arif Rasheed ◽  
Mitra Saeedi ◽  
Nalini Gebril ◽  
Kumaraseh Hariraj
Keyword(s):  
Stock Market ◽  
Oil Price ◽  
Causal Relationships ◽  
Market Returns ◽  
Short Term ◽  
Stock Market Returns

Media Coverage of Corporate Governance Scandals and Stock Market Returns

2011 ◽  
Author(s):  
Raymond Siu Yeung Chan ◽  
See Tin Tang ◽  
Roy F. Ying ◽  
Sun Wing Tam
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Media Coverage ◽  
Market Returns ◽  
Stock Market Returns
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