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Price limit change and magnet effect: The role of investor attention

Author

Listed:
  • Zhang, Xiaotao
  • Li, Xinxian
  • Hao, Jing
  • Li, Peigong

Abstract

We explore the effect of the price limit change from 10% to 20% on the magnet effect in the ChiNext board in the Chinese stock market. The results show that the greater daily price limit range increase the magnet effect, while investor attention has a significant positive impact on the magnet effect after the price limit change.

Suggested Citation

  • Zhang, Xiaotao & Li, Xinxian & Hao, Jing & Li, Peigong, 2023. "Price limit change and magnet effect: The role of investor attention," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s154461232200753x
    DOI: 10.1016/j.frl.2022.103577
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    References listed on IDEAS

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