Behavioral Finance - Essay Example

Only on StudentShare

Extract of sample
Behavioral Finance

The financial reporting standards perform the function of regulating the business world by laying down the accounting standards and procedures which the limited companies need to follow. This not only helps in getting the financial information about companies on a common base by having standardized policies, but also serves the purpose of providing the users of financial statements with clear, accurate, reliable and relevant information (2005).
In the United Kingdom, there are three basic elements of the regulatory framework for all the listed companies. The government has its role in regulating the businesses by way of the Company Law; the accounting professionals perform their duties by preparing, interpreting and implementing the accounting standards being prepared for the financial reporting purpose; and finally the stock exchange keeps a check by having various stock exchange rules for the companies listed in the London Stock Exchange.
The Company Law is to be fulfilled by all the limited companies whether public or private, however there are variations depending upon the nature of the entity. ...
Download paper


Regulatory frameworks are at the heart of every system in the world in order to get it running in an organized way and yield the best possible results. In the corporate world, this regulatory framework relates to the different requirements for running the operations of the businesses as well as the further regulations for reporting the financial performance of the organization (Irene Henriques, Perry Sadorsky, 1999).
Author : grohan

Related Essays

Essay on Behavioural Finance
All the terms are part of the business strategy which is actually and play a decisive role in constructing marketing tactics (Stigler, 1957). The classical economists had always talked about the business tactics. Idea of growth and competitor business strategy is part of their explanation. Here are some who described economics and behavioral finance in all different perspective: Among major terminologies of economics, the classical economists have given much importance to the term “Competition”. Competition is something that surrounds the basic business environment, in which there are...
8 pages (2008 words) Essay
Stock Valuation and Behavioral Finance
Following formula is used to estimate the price of the stock using dividend growth model: Growth of the stock is calculated using the dividends paid by Shell since 2008 and it is shown in the appendix 1. Discount rate is calculated using the CAPM equation which is as follows: Rf = 4% Rm = 0.59% B = 0.078 So, using the above equations Re is found to be 3.9997% So, the price of the stock using the values identified is 84.86 The current price of shares of Shell is 2,246.5 however the estimated price is 84.86 which is well below. Price to Earnings (P/E) Ratio is the other technique used to...
6 pages (1506 words) Essay
Behavioral Finance
8 pages (2008 words) Research Paper
International Finance Essay
Hedging using arbitrage has the desired effect mainly in cases of cross border finance and trading in more than one currency as the inefficiency in the pricing at the market is exploited by the method. In the case mentioned above, the fact that the interest rate is higher in case of the pound sterling as well as the relatively higher premium earned from the dollars justifies the advantages of this method....
10 pages (2510 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!