Asset float and speculative bubbles / Harrison Hong, Jose Scheinkman, Wei Xiong.

Author/creator Hong, Harrison G.
Other author Scheinkman, José Alexandre.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
Subjects

SeriesNBER working paper series ; working paper 11367
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11367. UNAUTHORIZED
Summary "We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with limited float because of insider lock-ups. They have heterogeneous beliefs due to overconfidence and face short-sales constraints. A bubble arises as price overweighs optimists' beliefs and investors anticipate the option to resell to those with even higher valuations. The bubble's size depends on float as investors anticipate an increase in float with lock-up expirations and speculate over the degree of insider selling. Consistent with the internet experience, the bubble, turnover and volatility decrease with float and prices drop on the lock-up expiration date"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 7/1/2005.
Bibliography noteIncludes bibliographical references.
Access restrictionAvailable only to authorized users.
Other formsAlso available in print.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005618325

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Electronic Resources Access Content Online ✔ Available