Journal of Financial Economics Vol. 100 No. 2 2011
Country-specific sentiment and security prices☆
Abstract
I study the effect of country-specific sentiment on security prices. I provide evidence that a country’s popularity among Americans affects US investors’ demand for securities from that country and causes security prices to deviate from their fundamental values. Moreover, I find that country popularity is positively associated with the intensity of US cross-border mergers and acquisitions activity, suggesting that country popularity also affects firms’ investment decisions.
- DOI
- 10.1016/j.jfineco.2010.10.020
- Volume
- 100
- Issue
- 2
- Pages
- 382-401
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref