Altanlar, A orcid.org/0000-0002-6301-8422, Guo, J and Holmes, P orcid.org/0000-0002-7812-341X (2019) Do culture, sentiment and cognitive dissonance explain the “above suspicion” anomalies? European Financial Management, 25 (5). pp. 1168-1195. ISSN 1354-7798
Abstract
We investigate how cognitive dissonance arising from interactions between sentiment and culture affects momentum and post‐earnings‐announcement‐drift (PEAD). We focus on differing views relating to change between Western and East Asian cultures. Building on Hong and Stein (1999) and recognising Westerners' (Easterners') belief in continuation (reversal), we propose cognitive dissonance arises in different circumstances and to differing degrees in the two cultures, resulting in it being a key driver of the anomalies. Results support our hypotheses, suggesting sentiment and culture interact to impact cognitive dissonance, explaining differences in the anomalies across countries evident in prior literature.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This article is protected by copyright. All rights reserved. This is the peer reviewed version of the following article: Altanlar, A , Guo, J and Holmes, P (2018) Do culture, sentiment and cognitive dissonance explain the “above suspicion” anomalies? European Financial Management. ISSN 1354-7798, which has been published in final form at https://doi.org/10.1111/eufm.12203. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. |
Keywords: | Culture Investor; Sentiment; Cognitive Dissonance; Momentum; Post‐Earnings‐Announcement‐Drift |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 02 Oct 2018 09:46 |
Last Modified: | 10 Oct 2020 00:38 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/eufm.12203 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:136438 |