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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have