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Collection: Faculty Working Papers  
Title A Behavioral Approach to Stock Pricing
Author Paudel, Jayash
Laux, Judy
Type of Resource text
Digital Origin born digital
Date Created 2010-03
Abstract Recent literature in behavioral finance has contradicted the notion of efficiency of markets. Greater emphasis on how psychological biases influence both the behavior of investors and asset prices has led to a strong debate among proponents of behavioral finance and neoclassical finance. This has created the need to study how psychology affects financial decisions in households, markets and organizations. This study conducts a pooled ordinary least squares (OLS) model using the fixed effects estimator to investigate the linkage between investor sentiment and stock prices for 35 firms belonging to three different industries over a time period of 56 years, from 1950 to 2005. The findings suggest that investor sentiment does not significantly affect the stock prices in this sample.
Keywords market efficiency
stochastic discount factor model
behavioral finance
investor sentiment function
stock prices
Rights Statement Copyright restrictions apply. Contact the author for permission to publish.
Note (admin) Acquired from Department of Economics and Business. Saved as PDF/A1.b using Adobe Acrobat Professional.
Language eng
Extent 8 p. : ill.
Local Identifier 2010-01
Handle http://hdl.handle.net/10176/coccc:3310
Attached Files
Name Description MIMEType Size Downloads
BehavioralApproach.pdf   master application/pdf 405.24KB 0

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Created: Fri, 11 Feb 2011, 10:39:05 MST by Christine Ashlock (admin) . Detailed History