Download or read book Assessment of Relationship Between Market Anomalies and Investors Decisions written by Dr.Hossein Parsian and published by . This book was released on 2016 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aimed to assess the relationship between market anomalies and investors' decisions. To this end, using correlation and regression analyses, the impact of market anomalies indices in a prevailing approach, the stock price to earnings (P/E) ratio, operating cash flow to price ratio and accruals to investors' decisions ratio were assessed and measured in six hypotheses based on two criteria of investment in workforce and investment in capital assets. The results obtained from testing the hypotheses by investigating 75 companies listed in Tehran Stock Exchange during 2009-2013 revealed that there was no relationship between P/E ratio and accruals indices with investing in the workforce; but presence of a relationship between operating cash flow to price ratio and investment in workforce was confirmed. Also, the association between two indices of stock price to earnings ratio and operating cash flow to price ratio with investments in capital assets was confirmed. However, no significant relationship was found between accruals and investment in capital assets.
Download or read book Efficiency and Anomalies in Stock Markets written by Wing-Keung Wong and published by Mdpi AG. This book was released on 2022-02-17 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Efficient Market Hypothesis believes that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear again without any warning. A Special Issue on "Efficiency and Anomalies in Stock Markets" will be devoted to advancements in the theoretical development of market efficiency and anomaly in the Stock Market, as well as applications in Stock Market efficiency and anomalies.
Download or read book Stock Market Anomalies written by Elroy Dimson and published by CUP Archive. This book was released on 1988-03-17 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Market Anomaly Size Effect Literature Review Key Theories and Empirical Methods written by Arthur Ritter and published by GRIN Verlag. This book was released on 2015-06-02 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2014 in the subject Business economics - Business Management, Corporate Governance, grade: 16 (1,7), University of St Andrews (School of Management), course: Research Methods for Finance and Management, language: English, abstract: The size effect is a market anomaly in asset pricing according to the market efficiency theory. According to the current body of research, market anomalies arise either because of inefficiencies in the market or the underlying pricing model must be flawed. Anomalies in the financial markets are typically discovered form empirical tests. These tests usually rely jointly on one null hypothesis H0= markets are efficient AND they perform according to a specified equilibrium model (usually CAPM). Thus, if the empirical study rejects the H0, the reason could either be due to market inefficiency or due to the incorrect model. Market efficiency theory says that the price of an asset fully reflects all current information and is not predictable (Fama 1970). Fama (1997) states that market anomalies, even long‐term anomalies, are not an indicator for market inefficiencies due to the reason that they randomly split between “underreaction and overreaction, (so) they are consistent with market efficiency” (p. 284), they happen by chance and it is always possible to beat the market by chance. This essay will give an overview of the literature of the size effect and will stress the key theories, empirical methods and findings, as well as the existing body of research about this particular anomaly.
Download or read book Investment Styles Market Anomalies and Global Stock Selection written by Richard O. Michaud and published by . This book was released on 2015 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: For years, investment professionals have used stock factors, such as price-to-book ratio, to help make stock selection decisions. If a stock factor is associated with ex post risk-adjusted returns, it is said to be anomalous, and anomalous stock factors can often be profitably exploited. In this monograph, the author investigates factor-return relationships by looking at the rationales for their existence and by drawing on a database of global equity market data. The results of this analysis will comfort some readers while surprising others.
Download or read book Beyond the Random Walk written by Vijay Singal and published by Financial Management Association Survey and Synthesis Series. This book was released on 2006 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an efficient market, all stocks should be valued at a price that is consistent with available information. But as financial expert Singal points out, there are circumstances under which certain stocks sell at a price higher or lower than the right price. Here he discusses ten such anomalous prices and shows how investors might--or might not--be able to exploit these situations for profit.
Download or read book The Handbook of Equity Market Anomalies written by Leonard Zacks and published by John Wiley & Sons. This book was released on 2011-08-24 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment pioneer Len Zacks presents the latest academic research on how to beat the market using equity anomalies The Handbook of Equity Market Anomalies organizes and summarizes research carried out by hundreds of finance and accounting professors over the last twenty years to identify and measure equity market inefficiencies and provides self-directed individual investors with a framework for incorporating the results of this research into their own investment processes. Edited by Len Zacks, CEO of Zacks Investment Research, and written by leading professors who have performed groundbreaking research on specific anomalies, this book succinctly summarizes the most important anomalies that savvy investors have used for decades to beat the market. Some of the anomalies addressed include the accrual anomaly, net stock anomalies, fundamental anomalies, estimate revisions, changes in and levels of broker recommendations, earnings-per-share surprises, insider trading, price momentum and technical analysis, value and size anomalies, and several seasonal anomalies. This reliable resource also provides insights on how to best use the various anomalies in both market neutral and in long investor portfolios. A treasure trove of investment research and wisdom, the book will save you literally thousands of hours by distilling the essence of twenty years of academic research into eleven clear chapters and providing the framework and conviction to develop market-beating strategies. Strips the academic jargon from the research and highlights the actual returns generated by the anomalies, and documented in the academic literature Provides a theoretical framework within which to understand the concepts of risk adjusted returns and market inefficiencies Anomalies are selected by Len Zacks, a pioneer in the field of investing As the founder of Zacks Investment Research, Len Zacks pioneered the concept of the earnings-per-share surprise in 1982 and developed the Zacks Rank, one of the first anomaly-based stock selection tools. Today, his firm manages U.S. equities for individual and institutional investors and provides investment software and investment data to all types of investors. Now, with his new book, he shows you what it takes to build a quant process to outperform an index based on academically documented market inefficiencies and anomalies.
Download or read book Far from Random written by Richard Lehman and published by John Wiley and Sons. This book was released on 2010-05-13 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since Burton Malkiel’s seminal work A Random Walk Down Wall Street was published, the financial world has swallowed whole the idea that market movement is chaotic and random. In Far from Random, Richard Lehman uses behavior-based trend analysis to debunk Malkiel’s random walk theory. Lehman demonstrates that the market has discernible trends that are foreseeable. By learning to spot these trends, investors and traders can predict market movement to boost returns in anything from equities to 401(k) accounts. Richard Lehman has been a financial professional for more than thirty years. He studied the first iterations of behavioral finance back in the 1970s as a financial marketer and has since worked in various facets of the financial industry. His early introduction to behavioral finance and the more recent introduction to trend analysis led him to this important discovery.
Download or read book Navigating Financial Frontiers written by and published by . This book was released on 2023-10-06 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 'Navigating Financial Frontiers: Harnessing Equity Return Insights, Market Anomalies, and Dynamic Asset Allocation Mastery, ' readers embark on a comprehensive journey through the intricate landscape of financial markets. This insightful work serves as a guiding beacon for investors and financial professionals, offering a deep dive into the nuanced strategies of equity return analysis, market anomalies, and dynamic asset allocation. The narrative unfolds with a meticulous exploration of equity return insights, unraveling the underlying patterns and trends that drive market dynamics. Through rigorous analysis and real-world examples, the book deciphers the complexities of equity investments, empowering readers with valuable knowledge to make informed decisions in an ever-changing financial environment. The exploration of market anomalies adds a compelling layer to the narrative, shedding light on the anomalies and inefficiencies that exist within financial markets. Readers are introduced to the intriguing world of anomalies, anomalies that challenge traditional financial theories and offer unique opportunities for astute investors. Dynamic asset allocation mastery takes center stage as the book navigates the evolving strategies employed by seasoned professionals. The author dissects the art of balancing risk and reward, emphasizing the importance of adaptability and foresight in maximizing investment portfolios' potential. Through case studies and expert analysis, readers gain valuable insights into the intricacies of dynamic asset allocation, equipping them with the tools to optimize their investment strategies. 'Navigating Financial Frontiers' stands as a comprehensive resource, bridging the gap between theory and practice in the realm of finance. It empowers readers to navigate the complexities of financial markets with confidence, harnessing equity return insights, leveraging market anomalies, and mastering dynamic asset allocation. As the financial frontiers continue to evolve, this book serves as an invaluable guide for those seeking to thrive in the dynamic world of investments.
Download or read book Critical analysis of the behavioural finance as a theory written by Lars Steilmann and published by GRIN Verlag. This book was released on 2017-11-13 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2015 in the subject Economics - Finance, grade: 1,3, University of Applied Sciences Essen, language: English, abstract: The process of making decisions on the financial market is influenced by various factors and involves a relatively complex behaviour. In general two factors drive the process, one the financial model, that represents the correlation of risk and return and second the internal factors determined by skill level, investment portfolio and education. This work at hand distinguishes between traditional and modern theory of financial markets. The Efficient Market Hypothesis (EMH) explains that investors act rationally and make economic decisions on a rational basis. These process of decision making is explained in the Expected Utility Theory and assumes that investors are doing everything to optimize their performances, which correlates with the term `homo oeconomicus`. The behavioural financial theory, taken as the modern theory, basically handles individual circumstances that result in decision makings on the market. This work at hand will work out the changes that proceeded over the years and try to explain which way is more sufficient for analysing and understanding occasions on the financial market. The aim is to impart, how behavioural finance tries to explain the financial market with help of models. Furthermore possible shortcoming or critics of these models shall be shown.
Download or read book Adaptive Markets written by Andrew W. Lo and published by Princeton University Press. This book was released on 2019-05-14 with total page 503 pages. Available in PDF, EPUB and Kindle. Book excerpt: A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist—the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.
Download or read book 100 Great Lives written by John Canning and published by . This book was released on 1975 with total page 768 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Security Market Imperfections in Worldwide Equity Markets written by Donald B. Keim and published by Cambridge University Press. This book was released on 2000-03-13 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study of security market imperfections, namely the predictability of equity stock returns, is one of the fundamental research areas in financial modelling. These anomalies, which are not consistent with existing theories, concern the relation between stock returns and variables, such as firm size and earnings-to-price ratios, and seasonal effects, such as January and turn-of-the-month. This book provides the most complete and current account of work in the area. Leading academics and investment researchers have combined to produce a comprehensive coverage of the subject, including both cross-sectional and time series analyses, as well as discussing the measurement of risk and prediction models that have been used by institutional investors. The studies cover many worldwide markets including the US, Japan, Asia, and Europe. The book will be invaluable for courses in financial engineering, investment and portfolio management, and as a reference for investment professionals seeking an up-to-date source on return predictability.
Download or read book An Explanation of Financial Market Anomalies written by Chih-Wen Yang and published by . This book was released on 2017 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: At present, there are two main explanations for market anomalies, namely, risk-based and behavioral. While the risk-based perspective states that abnormal returns arise owing to investors undertaking financial risks, the behavioral perspective states that abnormal returns arise owing to investor psychology. However, we believe that the source of abnormal returns originates from financing constraints. Viewed from a different perspective, financial constraints arise from information asymmetry, which in turn leads to an incorrect assessment of behavior. Moreover, the risk of financial distress also has a correlation with financial constraint. The link between the two provides another common explanation for market anomalies. This study utilizes publicly disclosed stock data of the Taiwan stock exchange in order to prove the above argument. Furthermore, apart from the commonly observed explanations of under- and overreaction, cash dividends can also logically explain the extent of under- and overreaction, which plays a critical role in determining the expected returns of an asset portfolio.
Download or read book Chapter 25 written by Steve Z. Fan and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Stock market anomalies representing the predictability of cross-sectional stock returns are one of most controversial topics in financial economic research. This chapter reviews several well-documented and pervasive anomalies in the literature, including investment-related anomalies, value anomalies, momentum and long-term reversal, size, and accruals. Although anomalies are widely accepted, much disagreement exists on the underlying reasons for their predictability. This chapter surveys two competing theories that attempt to explain the presence of stock market anomalies: rational and behavioral. The rational explanation focuses on the improvement of the existing asset pricing models and/or searching for additional risk factors to explain the existence of anomalies. By contrast, the behavioral explanation attributes the predictability to human behavioral biases in collecting and processing financial information, as well as in making investment decisions.
Download or read book Neuroeconomics and the Decision Making Process written by Christiansen, Bryan and published by IGI Global. This book was released on 2016-03-17 with total page 377 pages. Available in PDF, EPUB and Kindle. Book excerpt: Neuroeconomics has emerged as a field of study with the goal of understanding the human decision-making process and the mental consideration of multiple outcomes based on a selected action. In particular, neuroeconomics emphasizes how economic conditions can impact and influence the decision-making process and alternately, how human actions have the power to impact economic conditions. Neuroeconomics and the Decision-Making Process presents the latest research on the relationship between neuroscience, economics, and human decision-making, including theoretical foundations, real-world applications, and models for implementation. Taking a cross-disciplinary approach to neuroeconomic theory and study, this publication is an essential reference source for economists, psychologists, business professionals, and graduate-level students across disciplines.
Download or read book Herd Behavior in Financial Markets written by Sushil Bikhchandani and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
