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Institutional investor sentiment, beta, and stock returns

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Publication date: Available online 25 November 2019

Source: Finance Research Letters

Author(s): Wenzhao Wang

Abstract

This paper examines the role of institutional investor sentiment in determination of the beta-return relation. Empirical evidence documents a positive (negative) beta-return relation over bearish (bullish) periods, implying that institutional investors can also be sentiment traders.


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