Fin matters

All that matters in finance and risk management

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Giving It Straight to Investors – Information Dissemination via Social Media Improves Stock Liquidity

In a previous post, we discussed an article than analyzes the impact of TV news on stock prices. Today, we consider a different form of information dissemination: Direct-Access Information Technology (DAIT) such as press releases through Twitter, RSS feeds, e-mail,… Continue Reading →

Do Female Fund Managers Manage Differently? Part 2

In a previous post, we discussed whether female fund managers differ from male managers with regard to performance and risk. The answer we gave: they don’t!

The Price Impact of TV News – A Study of Stock Market Efficiency

Can television news affect stock prices? And does the price impact of tv news depend on who presents the news? Both of these effects would contradict the Efficient Market Hypothesis (EMH). Put simply, the EMH states that security prices immediately… Continue Reading →

Speculation, Protection, or Arbitrage – Why Do Investors Trade Credit Default Swaps?

Why do investors engage in credit default swap (CDS) trading? At first glance, you would assume that the main motive is to obtain protection against default risk. But of course, a CDS is a bilateral contract: for every protection buyer… Continue Reading →

Investor Sentiment – An Overview

Forecasting returns is the holy grail of investment – and finance researchers are also interested in whether returns can be predicted because it tells us whether markets are “informationally efficient” (and thinking about this has been rewarded with a Nobel… Continue Reading →

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