How Wise Are Crowds? Insights from Retail Orders and Stock Returns

By Eric K. Kelley, Paul C. Tetlock. 2013

416 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/00dca062675f082dc1e3659230539356b05f27bb

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Citations in the corpus

Zero-Commission Individual Investors, High Frequency Traders, and Stock Market Quality (2021, neutral): “This contrasts with evidence from other studies that broader measures of retail order flow positively predict stock returns (Kaniel, Saar, and Titman, 2008; Kaniel, et al., 2012; Kelley and Tetlock, 2013, 2017; Barrot, Kaniel, and Sraer, 2016; Boehmer, et al., 2020; Farrell, et al., 2020).”
Retail Short Selling and Stock Prices (2016, methodology): “Kaniel, Saar, and Titman (2008) and Kelley and Tetlock (2013) argue that an analogous liquidity provision mechanism partially explains their findings of a positive relation between retail net buying and future”
Investor sentiment, trading behavior and stock returns (2017, background): “viour, such as abnormal trading activities and crowded trades, determines the cross-sectional variation of stock returns (Kelley and Tetlock 2013; Yao, Ma, and He 2014). For instance, Kumar and Lee (2006) find that”
Are Retail Traders Compensated for Providing Liquidity (2016, neutral): “…near here] The finding that retail imbalances predict future stock returns after conditioning on contemporaneous and past returns is consistent with Kelley and Tetlock (2013) and suggests that incremental information is embedded in retail trades that cannot be mechanically exploited by looking at…”
Media Content and Stock Returns: The Predictive Power of Press (2015, background): “Previous research shows that the tone in newspaper columns drives investor sentiment (Tetlock, 2007; Garcia, 2013), captures information beyond fundamentals (Tetlock, Saar-Tsechansky, and Macskassy, 2008) and affects individual trading behaviour (Kelley and Tetlock, 2013).”
customers as advisors: the role of social media in financial markets (2011, neutral): “As Kelley and Tetlock (2011) suggest, one explanation for these two seemingly contradictory sets of findings is that “through learning or attrition, the average skill of retail traders may have changed over time.””
Are Institutions Informed About News (2015, background): “Kelley and Tetlock (2013) use retail brokers' trading data from 2003 to 2007 to provide support for the conclusions of Kaniel, Liu, Saar, and Titman (2012) that retail investors have some information for a broader set of news announcements.”
Winners in the Spotlight: Media Coverage of Fund Holdings as a Driver of Flows (2014, background): “Finally, our evidence on fund investors adds to the broader literature on individual investment decisions, recently examined in Barber and Odean (2008), Brown et al. (2008), Ivković, Sialm, and Weisbenner (2008), and Kelley and Tetlock (2013).”