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Financial Innovation· 2026Q1

Investor heterogeneity and stock market volatility: cross-country evidence from an extended heterogeneous agent model

Zhongqiang Zhou, Jie Li, Xiong Xiong, Chee‐Wooi Hooy

Short summary

A new composition-weighted heterogeneity intensity measure, combining belief differentials and investor participation, strongly and robustly predicts stock market volatility across 12 developed and emerging markets.

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Economics and EconometricsEconomics, Econometrics and Finance