Publication
Title
Speculative trading, price pressure and overvaluation
Author
Abstract
Prior theoretical studies (e.g., Harrison and Kreps, 1978) show that investors pay prices over their valuation of assets if potential buyers are willing to pay even more in the future. This study provides supporting evidence by focusing on the Hong Kong through train scheme in August 2007, through which mainland Chinese investors were allowed to directly invest in Hong Kong market, but the decision was reassessed (actually suspended) in November 2007. Our findings show that Hong Kong stocks exhibit excess trading volume associated with the two announcements, and stocks are traded higher after the launch-decision day and lower after the reassessment-decision day.
Language
English
Source (journal)
Journal of international financial markets, institutions and money. - Binghamton, N.Y.
Publication
Binghamton, N.Y. : 2011
ISSN
1042-4431
Volume/pages
(2011), p. 419-442
ISI
000208769000006
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
VABB-SHW
Web of Science
Record
Identification
Creation 11.02.2011
Last edited 08.06.2017
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