The Role of Accounting Information in the Sentiment-Price Relation

• Main Author: CHEN, Kun-chih
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: investor sentiment; earnings response; Accounting; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/311; https://ink.library.smu.edu.sg/context/soa_research/article/1310/viewcontent/auto_convert.pdf

This study reconciles inconsistent evidence on the sentiment-price relation in prior studies by explicitly considering the effects of sentiment on both investor judgments and risk preferences. Using the uncertainty in accounting information, I am able to disentangle these two effects of sentiment an...