Advisors and asset prices: A model of the origins of bubbles

Journal of Financial Economics

Volumn 89, Issue 2, 2008, Pages 268-287

  Hong, Harrison ^a   Scheinkman, José ^a   Xiong, Wei ^a  

^a PRINCETON UNIVERSITY   (United States)

Author keywords

Analyst forecast; Heterogeneous beliefs; New technology bubble; Reputation concern

Indexed keywords

EID: 50249102206     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2007.09.001     Document Type: Article

References (37)

1. Abreu D., and Brunnermeier M. Bubbles and crashes. Econometrica 71 (2003) 173-204
2. Allen F., Morris S., and Postlewaite A. Finite bubbles with short sale constraints and asymmetric information. Journal of Economic Theory 61 (1993) 206-229
3. Bernheim D. A theory of comformity. Journal of Political Economy 102 (1994) 841-877
4. Blanchard O., and Watson M. Bubbles, rational expectations and financial markets. In: Wachtel P. (Ed). Crisis in the Economic and Financial Structure: Bubbles, Bursts, and Shocks (1982), Lexington Press, Lexington, MA
5. Chen J., Hong H., and Stein J. Breadth of ownership and stock returns. Journal of Financial Economics 66 (2002) 171-205
6. Cowen, A., Groysberg, B., Healy, P., 2003. Which types of analyst firms make more optimistic forecasts? Unpublished working paper, Harvard Business School.
7. DeLong J., Shleifer A., Summers L., and Waldmann R. Noise trader risk in financial markets. Journal of Political Economy 98 (1990) 703-738
8. DeMarzo P., Kaniel R., and Kremer I. Relative wealth concerns and financial bubbles. Review of Financial Studies 21 (2008) 19-50
9. Diether K., Malloy C., and Scherbina A. Differences of opinion and the cross section of stock returns. Journal of Finance 52 (2002) 2113-2141
10. Fudenberg D., and Tirole J. Game Theory (1991), MIT Press, Cambridge, MA
11. Gerstner L. Who Says Elephants Can't Dance? Leading a Great Enterprise Through Dramatic Change (2003), Harper Collins, New York, NY
12. Greenwood, R., Nagel, S., 2006. Inexperienced investors and bubbles. Unpublished working paper, Harvard Business School.
13. Grossman S., and Stiglitz J. On the impossibility of informationally efficient markets. American Economic Review 70 (1980) 393-408
14. Groysberg, B., Healy, P., Chapman, C., Gui, Y., 2005. Do buy-side analysts out-perform the sell-side? Unpublished working paper, Harvard Business School.
15. Harrison M., and Kreps D. Speculative investor behavior in a stock market with heterogeneous expectations. Quarterly Journal of Economics 92 (1978) 323-336
16. Hirshleifer D., and Teoh S. Limited attention, information disclosure, and financial reporting. Journal of Accounting and Economics 36 (2003) 337-386
17. Holmstrom B. Managerial incentive problems: adynamic perspective. Review of Economic Studies 66 (1999) 169-182
18. Holmstrom B., and Ricart i Costa J. Managerial incentives and capital management. Quarterly Journal of Economics 101 (1986) 835-860
19. Hong H., and Kubik J. Analyzing the analysts: Career concerns and biased earnings forecasts. Journal of Finance 58 (2003) 313-351
20. Kreps D. A Course in Microeconomic Theory (1990), Princeton University Press, Princeton, NJ
21. Lamont O., and Thaler R. Can the market add and subtract? Mispricing in tech stock carve-outs. Journal of Political Economy 111 (2003) 227-268
22. Lin H., and McNichols M. Underwriting relationships, analysts' earnings forecasts and investment recommendations. Journal of Accounting and Economics 25 (1998) 101-127
23. Malkiel B. A Random Walk Down Wall Street (2003), W.W. Norton and Company, New York, NY
24. Malmendier U., and Shantikumar D. Are investors naive about incentives?. Journal of Financial Economics 85 (2007) 457-489
25. Michaely R., and Womack K. Conflict of interest and the credibility of underwriter analyst recommendations. Review of Financial Studies 12 (1999) 653-686
26. Miller E. Risk, uncertainty and divergence of opinion. Journal of Finance 32 (1977) 1151-1168
27. Morris S. Political correctness. Journal of Political Economy 109 (2001) 231-265
28. Nairn A. Engines That Move Markets (2002), Wiley Inc., New York, NY
29. Ofek E., and Richardson M. Dotcom mania: the rise and fall of Internet stock prices. Journal of Finance 58 (2003) 1113-1137
30. Ottaviani M., and Sorensen P. Professional advice. Journal of Economic Theory 126 (2006) 120-142
31. Pacelle, M., 2000. Soros' Quantum Fund Lost Big on Tech Selloff. Smart Money Magazine, January 6, article available online at SmartMoney.com.
32. Pastor, L., Veronesi, P., 2006. Technological revolutions and stock prices. Unpublished working paper, University of Chicago.
33. Scharfstein D., and Stein J. Herd behavior and investment. American Economic Review 80 (1990) 465-479
34. Scheinkman J., and Xiong W. Overconfidence and speculative bubbles. Journal of Political Economy 111 (2003) 1183-1219
35. Shiller R. Irrational Exuberance (2000), Broadway Books, New York, NY
36. Shleifer A., and Vishny R. Limits of arbitrage. Journal of Finance 52 (1997) 35-55
37. Wolfe T. The Painted Word (1999), Farrar, Straus and Giroux, New York, NY