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Country-specific sentiment and security prices

  • Hwang, Byoung-Hyoun
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    I study the effect of country-specific sentiment on security prices. I provide evidence that a country's popularity among Americans affects US investors' demand for securities from that country and causes security prices to deviate from their fundamental values. Moreover, I find that country popularity is positively associated with the intensity of US cross-border mergers and acquisitions activity, suggesting that country popularity also affects firms' investment decisions.

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    File URL: http://www.sciencedirect.com/science/article/B6VBX-51CVG3Y-1/2/0a780bc136f8a866e04d2658487a1ad7
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    Article provided by Elsevier in its journal Journal of Financial Economics.

    Volume (Year): 100 (2011)
    Issue (Month): 2 (May)
    Pages: 382-401

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    Handle: RePEc:eee:jfinec:v:100:y:2011:i:2:p:382-401
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505576

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