Brad M. Barber’s research while affiliated with Keller Graduate School of Management and other places

... Retail investors tend to concentrate their purchases on attention-grabbing stocks that subsequently underperform(Barber et al, 2023).3 The European Court of Justice has revisited the issue of market abuse, specifically focusing on the disclosure of inside information by a journalist. ...

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Analysts’ Recommendations and Press Sentiment: Complementary or Alternative to Drive Investors’ Trading Behavior?

... In the investment side, the easy online or mobile execution methods generate a herd behavior among financial consumers, pushing them to have a high-frequency trading and an excessive risktaking by putting their wealth on the alternative assets such as cryptocurrencies with an extreme price volatility. (Barber et al. (2022)) And some of those markets are vulnerable to fraudulent intermediation practices. Taking the crypto-asset market in Korea as an example, there was a significant number of delisted coins (e.g., 74 new coin listings but 78 delisted coins in January to June 2022), and also a number of bribery and embezzlement cases reported. ...

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Protecting Financial Consumers in the Era of BD• ML Innovations: What behavioral patterns to be tamed? And how? (*BD•ML: BigData and MachineLearning) Protecting Financial Consumers in the Era of BD•ML * Innovations: What behavioral patterns to be tamed? And how?

... We measure signed retail trading as the difference between trading volume of retail purchases and trading volume of retail sales, scaled by shares outstanding. We classify the trades as either buy or sell following Barber et al. (2024). To the extent that retail investors are fully informed, we would expect a positive relation between signed trades and future returns. ...

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Testing the waters meetings, retail trading, and capital market frictions

... 5 Second, our approach allows us to directly conduct within-broker comparison of execution costs. Focusing on dispersion within broker is important since there are large variations of execution costs across brokers (Battalio et al. (2001) and Schwarz et al. (2023)). Third, because brokers may have heterogeneous criteria for making routing choices, having a wide range of brokers allows us to examine how different routing choices affect the competitiveness of the wholesaler market place. ...

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Who is Minding the Store? Order Routing and Competition in Retail Trade Execution

... To illustrate how portfolio companies' information is reflected in PE funds' reports to LPs, consider a relatable example: investors' investment in mutual funds (which are not PE funds). Whereas mutual funds generally invest in publicly traded securities, mutual fund investments in private entities are growing (e.g., Cederburg and Stoughton 2018; Kwon, Lowry, and Qian 2020;Agarwal, Barber, Cheng, Hameed, and Yasuda 2023). The mutual fund reports the fair values of its underlying investments, including any investments in private entities, but never provides detailed financial statements for the mutual fund's underlying portfolio companies. ...

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Understanding Private Equity Funds: A Guide to Private Equity Research in Accounting

... However, Aiston and Jung (2015) argue that family is not, in all cases, operating as a form of negative equity in the prestige economy of higher education. In Barber et al. (2021) study, family size was found to influence productivity, with wives being negatively affected more than husbands. This is because wives bear a disproportionate share of the burden for child care and care of family members. ...

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Gender and Family Size as Determinants of Research Productivity among Library Educators in Nigeria

... We retrieve the number of retail trades, trading volume, and dollar volume and compute retail order imbalance measures. Barber, Lin, and Odean (2023) show that focusing on the number of trades rather than the volume provides a more accurate reflection of attention-induced retail trading. 17 We proceed to estimate the following regression model: ...

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Social Media-Driven Noise Trading: Liquidity Provision and Price Revelation Ahead of Earnings Announcements

... Our findings suggest that the increased childcare and household duties disproportionately fell on the shoulders of women, even among financial professionals and in a sector where females are known to have superior skills. Our findings echo policy responses that account for the disparate effects of a common adverse shock (Oleschuk 2020;Barber et al. 2021). ...

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The gender effects of COVID: evidence from equity analysts

... Moreover, I show that mandatory fund disclosures can mitigate the overreaction induced by voluntary summary disclosures. My findings extend the recent literature on the role of salient disclosures in triggering attention-induced trade and subsequent underperformance (Rennekamp 2012;Bushee et al. 2020;Barber et al. 2022) and align with the findings of Guay et al. (2016) by highlighting the complementary role of voluntary and mandatory disclosures in jointly improving the information environment. ...

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How do retail investors respond to summary disclosure? Evidence from mutual fund factsheets

... This is in line with research findings in behavioral finance that show that more frequent trading is associated with worse returns, due to the significant costs incurred from excessive trading (Barber and Odean 2000). This is especially true for day trading (buying and selling a stock on the same day), where it has been suggested that only 5% of day traders earn money in the long term (Barber et al. 2020;Jordan and Diltz 2003), a rate of profitability which is closer to gambling than traditional investing. ...

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When Vegas Comes to Wall Street: Associations Between Stock Price Volatility and Trading Frequency Among Gamblers