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Difference of opinion among investors versus analysts.
- Source :
- Accounting & Finance; Jun2023, Vol. 63 Issue 2, p2347-2381, 35p, 13 Charts, 1 Graph
- Publication Year :
- 2023
-
Abstract
- We construct an investorābased measure of differences of opinion (DO) to investigate the different implications of DO between retail investors (DOR), institutional investors (DOI), and analysts (DOA) on asset pricing. Using Chinese stock data, we find that three DO measures (DOR, DOI, and DOI) are negatively related to future returns; DOI's ability to predict returns can be partly explained by DOR and DOA, whereas DOR contains incremental information not available from DOI and DOA. DOR is more strongly associated with the severe overvaluation caused by retail investors' optimism than DOI or DOA, emphasising the specific role of retail investors in China's market. We further show that DOI and DOA are the results of the differences in their information sets, whereas DOR are the results of different interpretations of public information. [ABSTRACT FROM AUTHOR]
- Subjects :
- INVESTORS
INDIVIDUAL investors
INSTITUTIONAL investors
PRICES
STOCKS (Finance)
Subjects
Details
- Language :
- English
- ISSN :
- 08105391
- Volume :
- 63
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Accounting & Finance
- Publication Type :
- Academic Journal
- Accession number :
- 164372587
- Full Text :
- https://doi.org/10.1111/acfi.12972