Essays about: "overvaluation theory"

Found 5 essays containing the words overvaluation theory.

1. 1. Venture Capital-backing pre-IPO and Long-run Stock Performance

   University essay from

   Author : Björn Jakobsson; Viking Johansson; [2021-06-22]
   Keywords : venture capital backing; initial public offering; long-run stock performance; signaling theory;

   Abstract : This study aims to examine the effects that venture capital-backing has on companies that recently went public. The study examines three specific parts; a general stock return increasing signal of venture capital-backing, whether company characteristics affect the relationship between venture capital-backing and stock returns, and venture capital-backing in two specific industries. READ MORE

3. 2. Deal or No Deal - How Overvaluation and Governance Problems Drive Stock-Financed Acquisitions

   University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

   Author : Fabian Schimpf; Larissa Vogt; [2021]
   Keywords : Mergers and Acquisitions; Method of Payment; Stock Overvaluation; Corporate Governance; Shareholder Protection;

   Abstract : Theory suggests that overvalued firms can create value for their shareholders by exploiting their overvaluation to purchase less overvalued firms through stock-financed acquisitions. Recent evidence from the US indicates that these companies often fail to do so by significantly overpaying for their targets and destroying shareholder value in the long run. READ MORE

4. 3. The stock market reaction towards acquisition announcements in different business cycles

   University essay from Göteborgs universitet/Graduate School

   Author : Mathias Karlsson; Jacob Sundquist; [2016-10-07]
   Keywords : Cumulative abnormal return; business cycle; free cash flow theory; overvaluation theory; method of payment;

   Abstract : We investigate whether the stock market reaction towards acquisition announcements is dependent on different business cycles. In addition, we examine if the stock market reaction is consistent with predictions in the free cash flow theory (Jensen, 1986) and the overvaluation theory (Myers & Majluf, 1984). READ MORE

5. 4. Can Investor Sentiment Help Explain Stock Market Crises?

   University essay from Lunds universitet/Nationalekonomiska institutionen

   Author : Andreas Wendeberg; [2015]
   Keywords : investor sentiment; stock market crises; behavioral finance; Consumer Confidence Index; CMAX measure; Business and Economics;

   Abstract : Traditional financial theory, assuming rationality and stock market prices justified by fundamentals, has failed to explain the occurrence of several large stock market crises. Theories in behavioral finance suggest stock market overvaluation, eventually leading to stock market crises, partly occur due to noise trading. READ MORE

6. 5. Oh, RER'ly? Effects of Real Exchange Rate Misalignments on Economic Modernization

   University essay from Lunds universitet/Nationalekonomiska institutionen

   Author : Nils Landén Helmbold; [2014]
   Keywords : Real exchange rate; Equilibrium real exchange rate; Economic development; Lewis model; Modernization; Business and Economics;

   Abstract : The role of the real exchange rate in an economy’s modernization process is an ambiguous matter and is not essential in the canonical models of neo-classical growth theory. This thesis tries to determine the role of the real exchange rate in a modernization process for Chile, Brazil and the Republic of Korea by applying the theory of a dual-sector approach to economic development by Lewis. READ MORE