Effect of Investors Inflow on Market Dynamics

Student: Khozhenetc Andrei

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2021

Irrationality is one of the most interesting fields in financial research. In recent years, a lot of inexperienced traders have entered the market, making it important to analyze impact of inflow on the market. In this paper, I analyze non-fundamental factors which affect price dynamics and improve upon models in previous literature. I use them to model a profitable portfolio, and analyze the impact of investor inflow. I find that more complex models outperform more classical ones, but do not find evidence that inflow affects market dynamics.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses