Essays about: "Over-optimism"

Found 3 essays containing the word Over-optimism.

  1. 1. Stock Valuation, Dividends and Learning Through Age: how learning about a firm and its dividend policy affects its valuation

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Yousef Kaddoura; Marius Rrapushaj; [2018]
    Keywords : Market-to-Book Ratio; Firm value; Learning effects; Dividends; Uncertainty; Over optimism; Fama-MacBeth.; Business and Economics;

    Abstract : This paper looks into how learning about firms and their dividend policy affects their valuation, while comparing the results between North American and German firms. Learning is observed through the age of a firm,where the market-to-book ratio (M/B) is predicted to decline over a firm’s lifespan. READ MORE

  3. 2. Driving Forces of the Investment Decision Process in a Technology Firm. A multifaceted understanding of the investment behaviour of individuals and the firm

    University essay from Göteborgs universitet/Graduate School

    Author : Jenny Frisell; louise Lorentzon; [2015-07-13]
    Keywords : Investment Decision Process; Forces; Behavioral Finance; Corporate Finance; Agency Theory; Bower-Burgelman Process Model;

    Abstract : Abstract Every company has the goal to maximize shareholder wealth by allocating funds to the most profitable investments. A company’s survival is dependent on its ability to stay competitive and maintain market share. In a company there is always a selection of potential investments, therefore the investment decision process is crucial. READ MORE

  4. 3. Behavioural Finance : The psychological impact and overconfidence in financial markets

    University essay from Institutionen för teknik och samhälle

    Author : Sixten Fagerström; [2008]
    Keywords : Behavioural finance; Overconfidence; Over-optimism; Cognitive psychology; Irrational markets; Econophysics;

    Abstract : Purpose The main purpose of this paper is to investigate overconfidence and over-optimism in the market. This leads the reader to the question, are the analysts “right” concerning their forecasts? The reader will also get to understand various and sometimes forgotten factors that affect we human beings in our decision making when it comes to investing and analysing which is also known as the behavioural finance theory. READ MORE