Survey of European Firms. Financial Management - Essay Example

Only on StudentShare

Extract of sample
Survey of European Firms. Financial Management

Survey of European Firms. Financial Management

They go on to elaborate that they two strategies are very connected to each other, thus insinuating that one could not be affected by investors reactions without the other being affected also.
There is some evidence to support the fact that profits have nothing to do with investor over (or under) reaction. In light of the massive amounts of evidence that speaks otherwise, I find myself unconvinced that a market that lives a breathes because of the activity of the investors will be unaffected by their whims. Oumar and Kodjovi (2003) find that there is most certainly a parallel between the stocks that do well and the state of mind possessed by those buying them. They say that someone who has been a recent loser in the stock market will tend to be a bit cautious until they find a new hot investment. Once they come across something that looks promising they will, because of a sense of inflated optimism and hope, buy more than they normally would. Someone who has been a consistent winner, on the other hand, will typically encourage within himself to grow a particular sense of apprehension and reserve. What are the end results of these two separate mentalities trading together on the market floor A bit of a confusing result to say the least. The market will reflect the optimism and pervasiveness of the investor who knows that he will bounce back. It will also reflect the introverted spending habits of someone who knows that the next big financial disaster is just around the corner. ...Show more


However there is a vast amount of: literature that provides evidence to the opposite direction. More specifically, the literature has documented profits for Contrarian and Momentum strategies that have been attributed to investor overreaction and under reaction, respectively.
Author : kozeymaggie
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Survey of European Firms. Financial Management "
with a personal 20% discount.
Grab the best paper

Related Essays

What Should Eastern European Migrants in UK Do In Order To Be More Gainfully Employed?
Last May 2004, the European Commission revealed that Poland, the Slovak Republic, the Czech Republic, Latvia, Slovenia, Lithuania, Hungary and Estonia decided to join the European Union (European Commission 2011; Clark and Drinkwater 2008). Among the members of the European Union, the United Kingdom was only one of three European countries that allow free migration of workers.
30 pages (7500 words) Dissertation
Survey Engineering Management
Engineering management has become a very important field for engineers because of the growing competition in the market and thus each and every engineer is supposed to have knowledge of engineering management principles.
9 pages (2250 words) Research Paper
Hovey and Beard Company Case
Additionally, job design describes the order in which the tasks of a specific job are done (Potter, 2009). Job design usually takes into consideration of all the factors which affect the execution of tasks with an aim of organizing the tasks so that the job is not a risk threat to the employee.
3 pages (750 words) Case Study
A survey of one Financial Market Anomaly (e.g. The Momentum Effect and Market Efficiency)
An anomaly provides the indication that a given theory or model does not imply in real life practices. Hence, anomalies often happen against the assumption of Capital Asset Pricing Model (CAPM). According to Schwert (2002), “anomalies are empirical results which seem to be inconsistent with maintained theories of asset-pricing behaviour”.
6 pages (1500 words) Essay
Educational Psychology
One of the reasons for children and adolescents is suspected weakness in themselves or in others. They try to cover up their weaknesses by aggressive behavior and showing the power personally. If a student is found weak mentally or in aspect of human or common intelligence then the surrounding adolescents whoever are aggressive in nature start subject them into bullying.
4 pages (1000 words) Essay
30). Intelligence generates a learner's ability to adopt realities of the general environment and the school culture, and the physical world, which is part of an integrated learning process. This enables the person to acquire traits that are more sociable.
2 pages (500 words) Essay
See attached file
When the government attempts to regulate the exercise of speech rights in traditional public forums, such as parks or public sidewalks, the U.S. Supreme Court examines whether the regulation restricts the content of the speech or merely regulates the time, manner, and place in which the speech is delivered.
9 pages (2250 words) Essay
Strategic management of small firms
ategic management in small firms pertains to business planning approach within such companies rather than on the study of management processes and the development of strategic management within smaller entities (Mazzarol, 2004). This paper is devoted towards the development of
12 pages (3000 words) Research Proposal
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email