Research Watch: Investor Sentiment, Liquidity, and Stock Shocks

As most readers will have gleaned by now, I keep a fairly close watch on the finance research literature. I often highlight interesting pieces, but there are often others worth scanning that I don’t link to. Beginning today, I’ll start highlighting some of those, and this edition mostly comes from the latest crop of papers at NBER:

• Exchange rate anomalies in the forward discount of currencies (Bacchetta/Wincoop)
• The overall effect of unexpected financial shocks is highly dependent on return rates (Guerrieri/Lorenzoni)
• Younger, unprofitable, and non-dividend-paying stocks — in other words, tech stocks — are more likely to be sensitive to waves of investor sentiment (Baker/Wurgler)

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2. The Trouble with Investor Bloggers
3. Social Stock Networks: Coveting Thy Neighbor’s Equities
4. Stock Touting, Image Spam, and the Russian Botnet Problem
5. Longest Run in Recent Stock Market History