..., an important emerging market. Secondly, the authors study the return predictability of a measure of investors’ overreaction, then examine whether the momentum effect in Vietnam is explained by overreaction. Design/methodology/approach Using the weekly data of more than 300 non-financial Vietnamese stocks...

... explanation and risk-based explanation. In behavioral-based explanation, De Bondt and Thaler (1985) posit that the return reversal effect is the overreaction to the information and the momentum effect is the underreaction to the information. In addition, three behavioral finance models explain the return...

... leads to an overreaction to private information followed by an underreaction when the information becomes public. Design/methodology/approach – In this study, the authors test analysts' overconfidence through the overreaction preceding a public announcement followed by an underreaction after...