- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
Recent evidence shows that investor sentiment predicts the cross-section of returns and it has larger effects on hard to value and difficult to arbitrage stocks such as high volatility, young, small, unprofitable, and non-dividend paying stocks. Furthermore, it shows that subsequent returns are relatively low (high) for hard to value stocks following high (low) Baker and Wurgler’s (BW) sentiment index suggesting that such stocks are relatively overpriced (underpriced) during high (low) sentiment periods. We present new evidence showing that the predictability of subsequent lower (higher) returns of hard to value stocks following high (low) BW sentiment index occur only when subsequent investor sentiment decreases (increases). In fact, hard to value stocks earn relatively higher (lower) returns following high (low) sentiment periods when the subsequent sentiment increases (decreases).