Title :
The impact of central bank´s open-market operations to the return rate of stocks
Author :
Aizhou Su ; Wenbin Bao ; Xilu Bao
Author_Institution :
Sch. of Econ.& Manage., Nanjing Univ. of Sci.& Technol., Nanjing, China
Abstract :
We often see that media report net injection as good news and withdrawal as bad news. However, this article finds that their impact to stock market´s return rate is not evident, while the declarations of sell repo, reverse repo and central bank bills have significant influence on it. We discover that behavior finance theory can explain this phenomenon better, and various classical biases are also found in investors´ decisions reacting to central bank´s operations.
Keywords :
decision making; investment; public finance; stock markets; behavioral finance theory; central bank bills; central bank open-market operations; investor decision; net injection; return rate of stocks; reverse repo; sell repo; stock market return rate; withdrawal; Economic indicators; Finance; Instruments; Psychology; Stock markets; Systematics; behavioral finance theory; event study; open-market operations; psychology of investors;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
DOI :
10.1109/ICSSSM.2015.7170165
