Work-in-Progress:
1. Muni with Sean Cao (Maryland), and Anya Nakhmurina (Yale)
2. What Drives the Dynamics of CSR Returns? with Renxuan Wang (CEIBS), Russ Wermers (Maryland), and Ruoke Yang (SEC)
3. Negative Sentiment and Aggregate Retail Trading: Evidence from Mass Shootings
-- PhD First-Year Summer Paper (Resting)
Abstract: I analyze the role of sentiment in aggregate retail investors’ trading activity. Using mass shootings in the U.S. as exogenous, non-economic, and negative shocks to investor sentiment, I find that retail investors on average net sell stocks of firms headquartered in the states where mass shootings took place in the previous week ("local'' stocks). During the week after mass shootings, local stocks experience around 8% of the sample mean decrease in daily retail share volume order imbalance. Consistent with lower sentiment-driven trading, the retail net divestment from local stocks increases in the number of victims from mass shootings, and is more pronounced following unsolved shootings and shootings with teenage victims. However, such trading behavior does not seem to be rational, as local mass shootings have little impact on local firms' financial and operating performances, as well as local economic conditions. Finally, institutional investors do not react to mass shootings, which suggests that retail investors are more prone to sentiment.
Presentation: AFA Poster Session 2024, SGF PhD Poster Session 2023, FMCG 2023, AFFI PhD Workshop 2023, AMES China 2023, Asian FA 2023 (Cancelled due to visa reasons), World Finance Conference 2023, FMA 2023, University of Maryland Finance Brownbag, University of Maryland Accounting PhD Workshop
1. Muni with Sean Cao (Maryland), and Anya Nakhmurina (Yale)
2. What Drives the Dynamics of CSR Returns? with Renxuan Wang (CEIBS), Russ Wermers (Maryland), and Ruoke Yang (SEC)
3. Negative Sentiment and Aggregate Retail Trading: Evidence from Mass Shootings
-- PhD First-Year Summer Paper (Resting)
Abstract: I analyze the role of sentiment in aggregate retail investors’ trading activity. Using mass shootings in the U.S. as exogenous, non-economic, and negative shocks to investor sentiment, I find that retail investors on average net sell stocks of firms headquartered in the states where mass shootings took place in the previous week ("local'' stocks). During the week after mass shootings, local stocks experience around 8% of the sample mean decrease in daily retail share volume order imbalance. Consistent with lower sentiment-driven trading, the retail net divestment from local stocks increases in the number of victims from mass shootings, and is more pronounced following unsolved shootings and shootings with teenage victims. However, such trading behavior does not seem to be rational, as local mass shootings have little impact on local firms' financial and operating performances, as well as local economic conditions. Finally, institutional investors do not react to mass shootings, which suggests that retail investors are more prone to sentiment.
Presentation: AFA Poster Session 2024, SGF PhD Poster Session 2023, FMCG 2023, AFFI PhD Workshop 2023, AMES China 2023, Asian FA 2023 (Cancelled due to visa reasons), World Finance Conference 2023, FMA 2023, University of Maryland Finance Brownbag, University of Maryland Accounting PhD Workshop