5. Useful Papers in Behavioral Finance (Under Construction)

Attention

Huberman, G., Regev, T., 2001. Contagious speculation and a cure for cancer:a nonevent that made stock prices soar. Journal of Finance 56, 387-396.

Fang, L., Peress, J. ,2009. Media coverage and the cross-section of stock returns. Journal of Finance 64, 2023-2052.

Da, Z., Engelberg, J., Gao, P. 2011. In search of attention. Journal of Finance 66, 1461-1499.

Li, J., Yu, J. 2012. Investor attention, psychological anchors, and stock return predictability. Journal of Financial Economics 104,  401-419.

Information Processing Capacity

Grinblatt, M., Keloharju, M., Linnainmaa, J. 2012. IQ, Trading Behavior, and Performance. Journal of Financial Economics 104, 339-362.

Grinblatt, M., Keloharju, M., Linnainmaa, J. 2011, IQ and Stock Market Participation. Journal of Finance 66, 2119-2164.

Rooij, M. V., Lusardi, A., Alessie, R., 2011. Financial literacy and stock market participation. Journal of Financial Economics 101,449-472.

Cohen, L., Lou, D., 2012. Complicated firms. Journal of Financial Economics 104,383-400.

Cohen, L., Frazzini, A., 2008. Economic links and predictable returns. Journal of Finance 63, 1977-2011.

Lamont, O. A., Thaler, R.H. 2003. Can the market add and subtract? Mispricing in tech stock carveouts. Journal of Political Economy 111, 227- 268.

Sentiment

Edmans, A., Garcia, D., Norli, O., 2007. Sports sentiment and stock returns. Journal of Finance 62, 1967-1998.

Hirshleifer, D., Shumway, T., 2003. Good day sunshine:stock returns and the weather. Journal of Finance 58, 1009-1032.

Yu, J., Yuan, Y. 2011. Investor sentiment and the mean-variance relation. Journal of Financial Economics 100, 367-381.

Stambaugh, R., Yu, J., Yuan ,Y. 2012. The short of it: investor sentiment and anomalies. Journal of Financial Economics 104, 288-302.

Social Influence

Hong, H., Kubik, J. D., Stein, J. C., 2004. Social interaction and stock market participation. Journal of Finance 59,137-163.


Brown, J. R., Ivković, Z., Smith, P. A., Weisbenner, S., 2008.  Neighbors matter: causal community effects and stock market participation. Journal of Finance 63, 1509-1531



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