Every investor in the market has access to the stock names, making it the\nmost popular information. However, this piece of information is often ignored\nby people and considered insignificant in the decision process. In fact,\nit is almost always the stock names that give investors the first impression of a\nstock, and thus psychologically speaking, should in turn impact the decision\nprocess. In this paper, we score the (Chinese) stock names according to the\nmeaning and the efficiency of passing information, so that we can work out a\nquantitative analysis of the stock names. Theoretically we derive the relationship\nbetween the stock name scores and the expected stock returns. Practically\nwe build up an imaginary market-neutral portfolio and analyze its return\nby historical data. From both the theoretical and the practical aspects we discuss\nthe two hypothesesâ??the liking theory and the information theory, and\nwe show that in the Chinese stock market, the liking theory dominates, which\nis opposite to the result from the US stock market.
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