Cargando…
Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies
This paper studies the relation of information cost, retail investor sentiment and asset pricing. Our motivation to study this model is to learn why retail investors could move asset price away from fundamental values. In the model, the institutional investors are pessimistic and the retail investor...
Autores principales: | , , |
---|---|
Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2022
|
Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9595539/ https://www.ncbi.nlm.nih.gov/pubmed/36282814 http://dx.doi.org/10.1371/journal.pone.0268387 |
_version_ | 1784815675342061568 |
---|---|
author | Gao, Bin Hao, Huanhuan Xie, Jun |
author_facet | Gao, Bin Hao, Huanhuan Xie, Jun |
author_sort | Gao, Bin |
collection | PubMed |
description | This paper studies the relation of information cost, retail investor sentiment and asset pricing. Our motivation to study this model is to learn why retail investors could move asset price away from fundamental values. In the model, the institutional investors are pessimistic and the retail investors are optimistic, the ratio of the expected utility of informed and rational but uninformed institutional investors increases first and then decreases as the cost of information increases. In addition, a large number of retail investors promoted substantial increases in stock prices. This model provides part of the explanation for the unusually high stock price of Game Stop in early 2021 that retail investors cliqued and confronted institutional investors. |
format | Online Article Text |
id | pubmed-9595539 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-95955392022-10-26 Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies Gao, Bin Hao, Huanhuan Xie, Jun PLoS One Research Article This paper studies the relation of information cost, retail investor sentiment and asset pricing. Our motivation to study this model is to learn why retail investors could move asset price away from fundamental values. In the model, the institutional investors are pessimistic and the retail investors are optimistic, the ratio of the expected utility of informed and rational but uninformed institutional investors increases first and then decreases as the cost of information increases. In addition, a large number of retail investors promoted substantial increases in stock prices. This model provides part of the explanation for the unusually high stock price of Game Stop in early 2021 that retail investors cliqued and confronted institutional investors. Public Library of Science 2022-10-25 /pmc/articles/PMC9595539/ /pubmed/36282814 http://dx.doi.org/10.1371/journal.pone.0268387 Text en © 2022 Gao et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Gao, Bin Hao, Huanhuan Xie, Jun Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title | Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title_full | Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title_fullStr | Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title_full_unstemmed | Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title_short | Does retail investors beat institutional investors?——Explanation of game stop’s stock price anomalies |
title_sort | does retail investors beat institutional investors?——explanation of game stop’s stock price anomalies |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9595539/ https://www.ncbi.nlm.nih.gov/pubmed/36282814 http://dx.doi.org/10.1371/journal.pone.0268387 |
work_keys_str_mv | AT gaobin doesretailinvestorsbeatinstitutionalinvestorsexplanationofgamestopsstockpriceanomalies AT haohuanhuan doesretailinvestorsbeatinstitutionalinvestorsexplanationofgamestopsstockpriceanomalies AT xiejun doesretailinvestorsbeatinstitutionalinvestorsexplanationofgamestopsstockpriceanomalies |