Disagreement and the Stock Market

By Harrison G. Hong, Jeremy C. Stein. 2007

895 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/6b2ba6da72f79ba9f0b89c0a9b156b4531a540d3

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Citations in the corpus

Divergence of Sentiment and Stock Market Trading (2017, neutral): “portfolio balancing needs of investors (Hong and Stein, 2007), and differences of opinion should then be less”
The Marketing of Seasoned Equity Offerings (2010, neutral): “Downward-sloping demand curves can arise from asymmetric information (Benveniste and Spindt, 1989), differences of opinion among investors (Hong and Stein, 2007; and Miller, 1977), a limited number of investors who are paying attention to the stock (Merton, 1987; Zhang, 2004; and Duffie, 2010), or…”
Peer performance and stock market entry (2012, neutral): “Extrapolative beliefs influenced by success stories of peers can explain how financial innovations and investment styles spread, but they may also contribute to asset price bubbles, especially in markets with limits to arbitrage (see Scheinkman and Xiong 2002, Hong and Stein 2007).”
Retail investor attention and stock price crash risk: Evidence from China (2019, background): “The asymmetric actions make prices reflect a more optimistic valuation and result in a slower price discovery (Hong and Stein, 2007; Yu, 2011; Chatterjee et al., 2012; Cen et al., 2013).”
Media Makes Momentum (2014, background): “Collectively, findings suggest “a potentially important role for the media in shaping the behavior of the stock market” (Hong and Stein (2007), p. 118).”
Five Facts about Beliefs and Portfolios (2019, background): “A large academic literature has aimed to explain trading volume in financial markets via a mix of changes in beliefs and overconfidence (e.g., Harrison and Kreps, 1978; Hong and Stein, 1999; Scheinkman and Xiong, 2003; Hong and Stein, 2007).”
Which Past Returns Affect Trading Volume (2009, neutral): “Based on the results and studies discussed in this paper and based on several other findings, Hong and Stein (2007) write in their recent survey that “if behavioral finance is ever to approach the stature of classical asset pricing, it will have to move beyond being a large collection of empirical…”
Extrapolation and bubbles (2018, neutral): “In line with the Kindleberger (1978) notion of displacement, a bubble forms in our model after a sequence of large positive cash-flow shocks.”
Googling Investor Sentiment around the World (2019, neutral): “First, lower negative sentiment does not necessitate higher positive sentiment, given the dispersion of investor opinions (e.g., Diether, Malloy, and Scherbina (2002), Hong and Stein (2007)).”