We show that the moving averages (MAs) of stock market indices act as psychological barriers and affect investors' trading. Market indices do not move continuously near their MAs, especially in markets dominated by unsophisticated investors. Utilizing international markets data, we show that the...

Analyzing innovative firms' patent and financial data in 23 countries over 1990-2012, we find that more innovative firms hoard more cash for technology competition and opportunities. Our instrumental variable regression analysis based on the patent rights index supports a causal interpretation...