Speculative trading, price pressure and overvaluation.

Ding, Rong and Cheng, Peng (2011) Speculative trading, price pressure and overvaluation. Journal of International Financial Markets, Institutions and Money., 21 (3). pp. 419-442. ISSN 1042-4431

Full text is not in this repository.

This item is available in the Library Catalogue


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.

Item Type:Article
Research Areas:A. > Business School > Accounting and Finance
ID Code:7387
Deposited On:04 Apr 2011 13:42
Last Modified:28 Sep 2015 10:56

Repository staff only: item control page

Full text downloads (NB count will be zero if no full text documents are attached to the record)

Downloads per month over the past year