In this paper, we provide evidence that trading driven by investors' behavioral biases contributes to stock return momentum. In particular, we focus on two types of irrational trading, momentum trading and confidence-influenced trading, which could be driven by psychological biases introduced by...

Financial theory offers an array of explanations for corporate hedging. However, financial economists have not reached any definitive conclusions regarding whether corporations' hedging policies are consistent with theory. To examine this question, this study uses a database of the risk...