Abstract
This paper reviews literature on asset pricing and investor sentiment. It provides a fair accumulation of evidence with an objective of showing how productive has been the effort of modelling market sentiment in pricing assets. Research efforts in modelling non-standard investor behaviour have been successful in explaining aggregate predictability. However, despite the financial innovations and discussions on investor sentiment that happened in US markets, empirical work in emerging markets is still preliminary. The paper inquires the extent that the existing asset pricing models price the assets in the economy.
Journal eISSN: 2448-9344
Language: English
Page range: 77 - 91
Published on: Jun 1, 2017
Published by: Faculty of Management Studies and Commerce, University of Sri Jayewardenepura
In partnership with: Paradigm Publishing Services
© 2017 C. Gunathilaka, published by Faculty of Management Studies and Commerce, University of Sri Jayewardenepura
This work is licensed under the Creative Commons License.