Download or read book Demand Curves for European Stocks Slope Down Too written by Robert Neumann and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2000 implementation of float-capitalization index weights in the Dow Jones STOXXSM indices changed the demand for large European stocks. In this paper, we test for imperfect-substitution and price-pressure effects due to the change in the demand for stocks. Our results show that we cannot reject complete reversal after eight weeks of abnormal trading volume for companies with both decreased or increased index weights. This result is consistent with the existence of downward sloping demand curves for stocks. Contrary to the fundamental assumption of perfectly elastic demand curves in asset pricing theories, our findings suggest that a price pressure effect is not a plausible explanation.

Download or read book Do International Investors Demand Curves for Stocks Slope Down Too written by Rajesh Chakrabarti and published by . This book was released on 2015 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using changes in the MSCI Standard Country Indices for 29 countries between 1998 and 2001, we document that stock returns and volumes exhibit quot;index effectsquot; in international markets similar to those detected by the studies of US stocks. The inclusion of a stock generally leads to higher returns immediately following the announcement followed by a further rise till the actual change with a partial reversion in the post change period. Deletions lead to significant negative returns that continue after the change date. Volumes traded increase significantly and remain at high levels after the change date for the added stocks. There are also considerable cross-country variations in these effects. The evidence is consistent with the downward sloping demand curve hypothesis though some price-pressure effects are also present. Tests using data on ADR availability and free float on stocks added to the indices fail to turn up any evidence in support of information effects.

Download or read book Why Do Demand Curves for Stocks Slope Down written by Antti Petajisto and published by . This book was released on 2008 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Representative agent models are inconsistent with existing empirical evidence for steep demand curves for individual stocks. This paper resolves the puzzle by proposing that stock prices are instead set by two separate classes of investors. While the market portfolio is still priced by individual investors based on their collective risk aversion, those individual investors also delegate part of their wealth to active money managers who use that capital to price stocks in the cross-section. In equilibrium the fee charged by active managers has to equal the before-fee alpha they earn; this endogenously determines the amount of active capital and the slopes of demand curves. A calibration of the model reveals that demand curves can indeed be steep enough to match the magnitude of many empirical findings, including the price effects for stocks added to (or deleted from) the Samp;P 500 index.

Download or read book Demand Curves for Stocks Do Slope Down written by Aditya Kaul and published by . This book was released on 1999 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Do Demand Curves for Stocks Slope Down Evidence from Aggregate Data written by Xuejing Xing and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine whether the aggregate demand curve for stocks is downward sloping. As a proxy for aggregate demand, we use net outflows (dividends plus repurchases less net issues) from the stock market scaled by the previous year's market capitalization. To disentangle the information and price pressure effects from the demand curve effects, we use an information-free demographic variable as an instrument and look at the relation between annual changes in aggregate demand and excess market return. We find that information-free changes in the annual aggregate demand for stocks do not lead to changes in the annual excess market return. This finding supports long-term horizontal demand curves for stocks.

Download or read book Macroeconomics A European Text written by Michael Burda and published by Oxford University Press, USA. This book was released on 2013 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: The clarity and accessibility of this text, together with the numerous examples and case studies featured, combine to make the learning of macroeconomics as simple as possible.

Download or read book Do Demand Curves for Small Stocks Slope Down written by Ph.D. Biktimirov (CFA, Ernest N.) and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Stocks added to the Samp;P 500 generally experience positive abnormal returns following the announcement. Several competing explanations exist for this reaction, but small sample sizes and other issues make it difficult to distinguish among them. We examine this subject using the small-cap Russell 2000 index, which has a number of advantages over the Samp;P 500 in this context. Our primary finding is that stocks added to or deleted from the Russell 2000 experience significant changes in stock price and trading volume, but the effect is transitory. The results support the price pressure hypothesis.

Download or read book Is the Demand Curve for Stocks Downward Sloping New Evidence from Seasoned Equity Offerings written by Zhangkai Huang and published by . This book was released on 2009 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is the demand curve for stocks downward-sloping? The index-inclusion literature tries to answer this question by looking at price reactions to stocks added or deleted from major stock indices. We look for new evidence using another well-established event: the negative price reaction to the seasoned equity offerings. While this can be caused by asymmetric information, another plausible explanation might be a downward-sloping demand curve for stocks. We argue that we can disentangle the two factors using a natural experiment in China's stock market, where companies' equity offering plans need to be approved by the regulator. We find strong negative price reactions to the announcement of such approval. Since all information on the overvaluation of the firm is released when the firm announces its equity offering plan, the negative reaction to the approval of the plan cannot be explained by changes in the valuation of the firm. Furthermore, we find different price reactions in China's segmented stock market when the firm only issues new shares in one of the two domestic markets (A- and B-share markets). The evidence suggests that a significant part of the negative price reaction of equity offerings is related to a supply shock to a downward sloping demand curve.

Download or read book Inefficient Markets written by Andrei Shleifer and published by OUP Oxford. This book was released on 2000-03-09 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.

Download or read book The European Mosaic written by David Gowland and published by Routledge. This book was released on 2014-01-14 with total page 621 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Mosaic is an up-to-date introduction to all aspects of the politics, economics, culture and recent history of the European Union in particular and Europe in general. The European Mosaic effectively familiarizes students with EU issues that are currently in the news and likely to remain so for the foreseeable future. It is a clear and accessible introduction to the European polity. Its strongly interdisciplinary focus provides a multidimensional understanding of contemporary Europe, of the process of European integration, and of the dynamics of the European Union. Suitable for undergrduate courses in European politics.

Download or read book Economics European Edition written by Paul Krugman and published by Macmillan. This book was released on 2007-04-06 with total page 1044 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics: European Edition is the ideal text for introductory economics, bringing together an international scope of real world examples and economic theory. The text is supported by a number of features to enhance student understanding as well as supplements to consolidate the learning process.

Download or read book International Finance written by H. Kent Baker and published by Oxford University Press. This book was released on 2013-01-17 with total page 701 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understanding the current state of affairs and tools available in the study of international finance is increasingly important as few areas in finance can be divorced completely from international issues. International Finance reflects the new diversity of interest in international finance by bringing together a set of chapters that summarizes and synthesizes developments to date in the many and varied areas that are now viewed as having international content. The book attempts to differentiate between what is known, what is believed, and what is still being debated about international finance. The survey nature of this book involves tradeoffs that inevitably had to be made in the process given the vast footprint that constitutes international finance. No single book can cover everything. This book, however, tries to maintain a balance between the micro and macro aspects of international finance. Although each chapter is self-contained, the chapters form a logical whole that follows a logical sequence. The book is organized into five broad categories of interest: (1) exchange rates and risk management, (2) international financial markets and institutions, (3) international investing, (4) international financial management, and (5) special topics. The chapters cover market integration, financial crisis, and the links between financial markets and development in some detail as they relate to these areas. In each instance, the contributors to this book discuss developments in the field to date and explain the importance of each area to finance as a field of study. Consequently, the strategic focus of the book is both broad and narrow, depending on the reader's needs. The entire book provides a broad picture of the current state of international finance, but a reader with more focused interests will find individual chapters illuminating on specific topics.

Download or read book Modern Portfolio Theory and Investment Analysis written by Edwin J. Elton and published by John Wiley & Sons. This book was released on 2009-11-16 with total page 748 pages. Available in PDF, EPUB and Kindle. Book excerpt: An update of a classic book in the field, Modern Portfolio Theory examines the characteristics and analysis of individual securities as well as the theory and practice of optimally combining securities into portfolios. It stresses the economic intuition behind the subject matter while presenting advanced concepts of investment analysis and portfolio management. Readers will also discover the strengths and weaknesses of modern portfolio theory as well as the latest breakthroughs.

Download or read book Examining the Impact of the Volcker Rule on Markets Serial No 112 95 January 18 2012 112 2 Joint Hearing written by and published by . This book was released on 2013 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Ebook The European Union Economics Policy And History written by SENIOR and published by McGraw Hill. This book was released on 2011-11-16 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ebook: The European Union: Economics, Policy And History

Download or read book Examining the Impact of the Volcker Rule on Markets Businesses Investors and Job Creation written by United States. Congress. House. Committee on Financial Services. Subcommittee on Financial Institutions and Consumer Credit and published by . This book was released on 2012 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transitions from School to Work written by Ingrid Schoon and published by Cambridge University Press. This book was released on 2009-08-24 with total page 411 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume makes an important contribution to the growing literature on the transition from school to work. It provides a unique perspective on the global changes that have transformed school-to-work transitions since the 1970s; offers an integrative conceptual framework for analysis; and promotes a comparative, cross-national understanding of school-to-work transitions in a changing social context. The articles assembled in this volume compare and assess variations in school-to-work transitions across Europe and North America, providing empirical evidence on how young people negotiate the different options and opportunities available and assessing the costs and returns associated with different transition strategies. Unlike many other volumes on this subject - which are pitched at either the macro or micro level - this volume attempts to integrate both perspectives, capturing the complexity of this critical life course transition. Furthermore, the authors address policies aimed at improving the capacity of individuals to make effective transitions and at enabling societies to better coordinate educational and occupational institutions.