This paper has three main contributions to the literature on investor herds. First, it extends investor herding studies to an emerging yet relatively sophisticated Taiwanese stock market at the sector level by using firm level data. Second, it employs different methodologies designed to test the...

Previous tests of creditor moral hazard cannot distinguish between two types of investor behavior: expectations of implicit guarantees or better future economic fundamentals due to a prospective IMF program. The novelty of our approach lies in the inclusion of the forward foreign exchange rate...

This paper expands on the work of Sarno and Taylor (1999) and develops three alternative models in which creditor moral hazard might occur in equity markets under different assumptions regarding the existence of asset market bubbles and implicit guarantees. Incorporating IMF-related news...

Research on the determinants of commercial bank behavior has generally focused on financial and economic variables, ignoring political factors. Extending an earlier study by Brock and Suarez (2000) [Journal of Development Economics], we provide empirical evidence from Bolivia's recent experience...

In this paper, we examine the reaction of stock market returns and volatility in a diverse group of six emerging markets to a set of IMF events. In particular, we test within a panel framework whether there was an quot;investor panicquot; causing a significant drop in stock market returns on the...

This paper studies the effects of Federal Reserve communications on US financial market returns from 1998 to 2009 and asks whether a significant change occurred during the financial crisis of August 2007ndash;December 2009. We find, first, that central bank communication moves financial markets...

This paper examines the impact of International Monetary Fund (IMF) announcements programs on different sectors of the economy. Previous studies approach this issue from the perspective of financial sector and/or composite index returns only; there is limited evidence on the impact of IMF...

We analyze the impact of monetary policy communication of the National Bank of Poland (NBP), i.e. NBP announcements of interest rates changes and NBP announcements of new macroeconomic figures, on the financial market in Poland in its two main segments: the foreign exchange market and the stock...

Orlowski's paper is an important contribution to the literature on monetary policy in transition economies. It studies how variant monetary policies conducted in leading transition economies, Hungary, Poland, and the Czech Republic, have affected the real exchange rate trends differently. The...