Essays about: "overreaction theory"

Found 5 essays containing the words overreaction theory.

  1. 1. Fatal accidents in the mining industry – do investors react rationally?

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Björn Mattsson; [2020]
    Keywords : Finance; behavioral finance; market psychology; overreaction theory; efficient market hypothesis; mining; fatal accidents; Business and Economics;

    Abstract : The mining industry is characterized by a hazardous working environment for its employed blue-collar workers and a general complexity of valuation for investors. By theories of behav-ioral finance, corporate social responsibility, and others outlined in the following, this makes a setting where one could plausibly expect reactions and even overreactions among investors to fatal accidents incurred among employed miners related to the mining operations. READ MORE

  3. 2. A Multi-country Analysis of Term Structure Behavior

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Alberto Ceron; Giorgio Cicala; [2013]
    Keywords : Expectation Hypothesis; Term Structure of Interest Rates; Term Spread; Vector Autoregressive Model; Forward Rates;

    Abstract : This thesis aims to shed some further light on the much debated Expectation Hypothesis (EH). To test the theory we use the term structure, from 2000 to 2013, of four different countries, namely Italy, Sweden, Germany and the US. Our work presents four main tests of the EH, from standard term spread regressions to a more articulated VAR model. READ MORE

  4. 3. PANIC! PANIC! The sky is falling!! : A study of household’s reaction to financial news and whether their reaction is rational

    University essay from Handelshögskolan vid Umeå universitet

    Author : Mishka vom Dorp; Kenneth Shaw; [2008]
    Keywords : Behavioral Finance; Efficient Market Hypothesis; Recession; Media; Metacommunication; Investment;

    Abstract : If you happen to be an American and have trouble sleeping, do not attempt to fall asleep watching the nightly news because it is anything but boring. At a glance, the American economy seems to be in shambles. READ MORE

  5. 4. Beating the Benchmark - an Active Trading Strategy Based on Contrarian Trends and Jump Detection

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Linus Svensson; Gustav Fernström; [2006]
    Keywords : Contrarian trading; Extreme price changes; Jump detection; Black-Litterman; Economics; econometrics; economic theory; economic systems; economic policy; Nationalekonomi; ekonometri; ekonomisk teori; ekonomiska system; ekonomisk politik; Business and Economics;

    Abstract : Extreme price changes are identified in the stock market and related to jumps in the price process. After such extreme events, a reverting (also called contrarian) trend is examined. READ MORE

  6. 5. A short-term contrarian strategy in the Swedish Stock Exchange

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Gustav Aspegren; Henrik Kahm; [2006]
    Keywords : overreaction; reversal; contrarian strategy; De Bondt and Thaler; Economics; econometrics; economic theory; economic systems; economic policy; Nationalekonomi; ekonometri; ekonomisk teori; ekonomiska system; ekonomisk politik; Business and Economics;

    Abstract : One of the most important topics in financial literature is the Efficient Market Hypothesis (EMH). Recent financial research has questioned this hypothesis, and many authors have reached the conclusion that a contrarian strategy creates abnormal positive returns. In other words a strategy profiting buying losers and selling winners. READ MORE