search query: @indexterm demand functions / total: 55
reference: 7 / 55
| Author: | Cha, H.-J. Lee, B.-S. |
| Title: | The Market Demand Curve for Common Stocks: Evidence from Equity Mutual Fund Flows |
| Journal: | Journal of Financial and Quantitative Analysis
2001 : JUN, VOL. 36:2, p. 195-220 |
| Index terms: | MARKETS DEMAND FUNCTIONS DEMAND STOCKS FUNDS |
| Language: | eng |
| Abstract: | The authors examine whether the market demand curve for equities is downward sloping. The authors look at the aggregate demand curve. As a proxy for aggregate demand, the authors employ equity mutual fund flows. Unlike previous studies that focus on events that are unlikely to convey new information to the market, the authors devise an empirical framework that disentangles the price-pressure effect and the information effect. The authors do not find evidence for the price-pressure effect that equity fund flows directly affect stock market prices in the presence of fundamentals of firms. Instead, the authors find that equity fund flows seem to be influenced by the performance of the stock market and that investors try to forecast fundamentals of firms and change their demand for stocks accordingly. |
SCIMA