Tehran Institute for Advanced Studies (TeIAS)

/ Private Timing of Information Events: Theory of Momentum Overshoots & Correction __ Farshad Hagh-panah


Private Timing of Information Events: Theory of Momentum Overshoots & Correction

July 17, 2017


Khatam University, Building No2.
Address: Mollasadra Blvd., North Shirazi St., East Daneshvar St., No.17. See location on Google map


Dr. Farshad Hagh-panah

Assistant Professor of Economics and Finance


In this talk, Farshad presents a continuous-time model of trading on private information with uncertainty about the timing of information events. This uncertainty prevents informed traders from knowing the “newness” of their private information. Their trades can cause the price to systematically diverge from fundamentals even when market participants are rational, there are no persistent exogenous demand (or supply) shocks, and there are no restrictions on trade. This result links the behavior of informed rational traders, i.e. the “smart money”, to the seemingly manic episodes of price behavior, and suggests policy advice on the importance of transparency in markets.

Target Audience

All students and enthusiasts are invited to attend this lecture



Farshad Hagh-panah is a Ph.D. Candidate in Finance at Haas School of Business, University of California at Berkeley with an expected degree date of December 2017. He completed his M.B.A. in Finance at Sharif University of Technology in 2011, and two bachelor degrees in electrical engineering and petroleum engineering in 2008. Farshad has worked in financial sector as Financial Consultant and Head of Research. His main concern, currently, is improving the stability of financial markets, and consequently, his research interests are information economics, market microstructure, and behavioral finance.