Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma

We shed new light on the relevance of rational expectations and irrational exuberance of U.S. individual and institutional investors on Pacific-Basin stock returns.We find insignificant effects of irrational exuberance and significant effect of rational expectations on Asian markets with varying deg...

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Main Author:	Verma, Rahul
Format:	Article
Language:	English
Published:	Universiti Utara Malaysia 2009
Subjects:	HG Finance
Online Access:	http://repo.uum.edu.my/25083/1/IJBF%206%201%202009%2067%2094.pdf http://repo.uum.edu.my/25083/ http://ijbf.uum.edu.my/index.php/previous-issues/137-the-international-journal-of-banking-and-finance-ijbf-vol-6-no-1-2009
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Institution:	Universiti Utara Malaysia
Language:	English

id	my.uum.repo.25083
record_format	eprints
spelling	my.uum.repo.250832018-10-31T00:51:42Z http://repo.uum.edu.my/25083/ Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma Verma, Rahul HG Finance We shed new light on the relevance of rational expectations and irrational exuberance of U.S. individual and institutional investors on Pacific-Basin stock returns.We find insignificant effects of irrational exuberance and significant effect of rational expectations on Asian markets with varying degrees of intensity.There are greater responses of Hong Kong, Malaysia, Philippines, and Singapore while weaker linkages with Taiwan, Thailand, and Korea.Overall evidence suggests that rational expectations of institutional investors are transmitted to a greater extent than those of individual investors.These results are consistent with the view that international effects of the U.S. market can be attributed to rational investor sentiments. Universiti Utara Malaysia 2009 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25083/1/IJBF%206%201%202009%2067%2094.pdf Verma, Rahul (2009) Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma. The International Journal of Banking and Finance, 6 (1). pp. 67-94. ISSN 1617-722 http://ijbf.uum.edu.my/index.php/previous-issues/137-the-international-journal-of-banking-and-finance-ijbf-vol-6-no-1-2009
institution	Universiti Utara Malaysia
building	UUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Utara Malaysia
content_source	UUM Institutionali Repository
url_provider	http://repo.uum.edu.my/
language	English
topic	HG Finance
spellingShingle	HG Finance Verma, Rahul Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
description	We shed new light on the relevance of rational expectations and irrational exuberance of U.S. individual and institutional investors on Pacific-Basin stock returns.We find insignificant effects of irrational exuberance and significant effect of rational expectations on Asian markets with varying degrees of intensity.There are greater responses of Hong Kong, Malaysia, Philippines, and Singapore while weaker linkages with Taiwan, Thailand, and Korea.Overall evidence suggests that rational expectations of institutional investors are transmitted to a greater extent than those of individual investors.These results are consistent with the view that international effects of the U.S. market can be attributed to rational investor sentiments.
format	Article
author	Verma, Rahul
author_facet	Verma, Rahul
author_sort	Verma, Rahul
title	Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
title_short	Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
title_full	Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
title_fullStr	Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
title_full_unstemmed	Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma
title_sort	rational expectations, irrational exuberance: linkage between u.s. investors and pacific-basin stock returns rahul verma
publisher	Universiti Utara Malaysia
publishDate	2009
url	http://repo.uum.edu.my/25083/1/IJBF%206%201%202009%2067%2094.pdf http://repo.uum.edu.my/25083/ http://ijbf.uum.edu.my/index.php/previous-issues/137-the-international-journal-of-banking-and-finance-ijbf-vol-6-no-1-2009
_version_	1644284221643030528

Rational Expectations, Irrational Exuberance: Linkage between U.S. Investors and Pacific-Basin Stock Returns Rahul Verma

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