Do industries lead stock markets

By Harrison G. Hong, Walter N. Torous, Rossen Valkanov. 2007

611 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/01335fefbc98ce876002f822738de8b7b2f45c0b

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Citations in the corpus

Climate risks and market efficiency (2017, positive): “Our results are qualitatively similar to the 12 month results.”
International Stock Return Predictability: What is the Role of the United States? (2010, positive): “Swaminathan, 1993; Chordia and Swaminathan, 2000; Hou, 2007). This literature finds that returns on particular portfolios lead returns on other portfolios; for example, Lo and MacKinlay (1990) present evidence that returns on portfolios of U.”
Driven to Distraction: Extraneous Events and Underreaction to Earnings News (2009, background): “…facts suggest that an investor’s effort to process a news announcement by a firm and understand its implications for profitability can 1 See, e.g., Brennan, Jegadeesh, and Swaminathan (1993), Cohen and Frazzini (2008), Hong, Lim, and Stein (2000), Hong, Torous, and Valkanov (2007), and Hou (2007).”
The impact of climate change on the cost of bank loans (2020, positive): “Following the literature (e.g., Bradley and Roberts 2015; Qian and Strahan 2007; Graham et al. 2008; Chava 2014), we also include a wide range of control variables that could potentially affect the cost of bank loans.”
Network Centrality and the Cross Section of Stock Returns (2013, methodology): “Second, this paper provides new insight into the evidence presented in Hong, Torous, and Valkanov (2007).”
Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition (2020, methodology): “By way of theory, then, we are guided in our interpretation of the behavior of stock prices by investor underreaction and overreaction theories (Daniel, Hirshleifer, and Subrahmanyam 1998; Hong and Stein 1999; Hong, Torous, and Valkanov 2007).”
Innovative Efficiency and Stock Returns (2013, neutral): “…stock return lead-lags suggests that information diffuses gradually from large to small firms, across industries, and between firms that are followed by different numbers of analysts (Brennan, Jegadeesh, and Swaminathan, 1993; Hong, Torous, and Valkanov, 2007; Hou, 2007; Cohen and Frazzini, 2008).”
Investor sentiment and stock returns: Some international evidence (2009, methodology): “First, it is often argued that long-horizon regressions with nearly integrated regressors spuriously generate significant results at increasing horizons (cf. Hong et al. (2007), p. 17 for a discussion).”
Limited Investor Attention and Stock Market Misreactions to Accounting Information (2011, positive): “…that limited attention affects capital markets; indeed,Daniel, Hirshleifer, and Teoh(2002) suggest that limited attention may underlie an array of anomalous patterns in securities market trading and prices (e.g.,Huberman and Regev 2001; Hou and Moskowitz 2005; Hong, Torous, and Valkanov 2007).”
Does Investor Attention Influence Stock Market Activity? The Case of Spin-Off Deals (2011, background): “However, the evidence of an autocorrelation of stock returns at short horizons (Jegadeesh and Titman, 1993; Moskowitz and Grinblatt 1999; Hong, Touros, and Valkanov, 2007) suggests that that stock prices do not fully adjust to new information.”