...BEHAVIOURAL FINANCE Kindly respond to the below questions which are prepared to assist my term paper on behavioural finance. Mail your responses by 4 pm 27/10/2013. Please be fair while responding and provide the actual facts. 1. Name:Thippeswamy K S 2. Age:23 3. Gender:M 4. Have u traded on stock market: A. yes in live market B. yes in simulation C. no Your option:A 5. What is your general perception towards stock market? Your opinion:Not for a gambler. Highly volatile 6. Which one do you choose? A) Accepting a sure loss of $5,000, or B) taking a chance where there is a 50% chance you will lose $10,000 and a 50% chance that you will lose nothing. A) or B)? B Your opinion: better to take a chance as the loss may be only 2 times or no loss at all. 7. On what basis would you judge a share performance? A. Experts opinion B. Your own analysis of the market C. Based on mass behavior Your opinion: B and C 8. If there is a sudden hike in the price of your share, what would you do? A. Sell to maximize profits B. Retain for long term gains C. Wait for the price to increase more Your opinion: A. it is better to exit and buy later as the sudden rises last only few days than to repent later 9. Do you depend on other’s opinion for your investment? A. yes B. no C. sometimes...
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...Apple: Stock Research Analysis Apple (AAPL) is one of the most high profile stocks in the world. Regarding its valuation, people are often confused by its high price. Even though the price is high, Apple's valuation is significantly lower than its historical earnings growth rate and, more importantly, its forecast growth. Consequently, we believe that this high-profile growth stock that has recently began paying a dividend is undervalued at these levels. About Apple, taken directly from its website: Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. Earnings Determine Market Price The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph, the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings. Earnings and Price Correlated Fundamentals at a Glance A quick glance at the historical earnings and price correlated FAST Graphs™ on Apple shows a slight picture of undervaluation...
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...Markets have been around for a really long time. No not the markets your parents go to so they can get groceries this kind of market is where the supply and demand of items are measured called the stock market. The stock market crashed on September 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading. That was the largest point drop in any single day in history. It plummeted because Congress rejected the bank bailout bill. A stock market crash is a rapid and often unexpected drop is stock rates. When the stock market crashes it causes the world to worry especially when the stock market crashes in a major time period such as a war. the supply of the product is rapidly decreasing while the demand stays the same or...
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...THE JOURNAL OF FINANCE • VOL. LVI, NO. 6 • DEC. 2001 The Stock Market Valuation of Research and Development Expenditures LOUIS K. C. CHAN, JOSEF LAKONISHOK, and THEODORE SOUGIANNIS* ABSTRACT We examine whether stock prices fully value firms’ intangible assets, specifically research and development ~R&D!. Under current U.S. accounting standards, financial statements do not report intangible assets and R&D spending is expensed. Nonetheless, the average historical stock returns of firms doing R&D matches the returns of firms without R&D. However, the market is apparently too pessimistic about beaten-down R&D-intensive technology stocks’ prospects. Companies with high R&D to equity market value ~which tend to have poor past returns! earn large excess returns. A similar relation exists between advertising and stock returns. R&D intensity is positively associated with return volatility. THE MARKET VALUE OF A F IRM’S SHARES ultimately ref lects the value of all its net assets. When most of the assets are physical, such as plant and equipment, the link between asset values and stock prices is relatively apparent. In modern economies, however, a large part of a firm’s value may ref lect its intangible assets, such as brand names. Under generally accepted U.S. accounting principles, many types of intangible assets are not reported in firms’ financial statements. When a firm has large amounts of such intangibles, the lack of accounting information generally complicates the task of...
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...Finance 金融, 2012, 2, 151-154 http://dx.doi.org/10.12677/fin.2012.23017 Published Online July 2012 (http://www.hanspub.org/journal/fin) The Empirical Research on the Effect of Investor Sentiment for the Stock Market of China Based on Stock Index Futures Yongquan Pan, Zi Lin Dongling School of Economics and Management, University of Science and Technology Beijing, Beijing Email: yqpan@ustb.edu.cn, linziliz@sina.com Received: Feb. 6th, 2012; revised: Feb. 26th, 2012; accepted: Mar. 4th, 2012 Abstract: This paper discusses the affect of stock index futures for investor sentiment’s measure and study if the new indicator has better interpretation to stock returns than before. Finally, the reflection of the negative emotions on the market is studied by this indicator. Keywords: Investor Sentiment; Stock Index Futures; Stock Return 基于股指期货的投资者情绪对中国股市 影响的实证研究 潘永泉，林 梓 北京科技大学，东凌经济管理学院金融工程系，北京 Email: yqpan@ustb.edu.cn, linziliz@sina.com 收稿日期：2012 年 2 月 6 日；修回日期：2012 年 2 月 26 日；录用日期：2012 年 3 月 4 日 摘 要：本文将股指期货合约作为投资者情绪的度量指标，研究在此基础上构建的投资者情绪指标是 否对于股票收益率有更强的解释能力，并以此研究其对股票市场的消极情绪是否反映的更为充分。 关键词：投资者情绪；股指期货；股票收益率 1. 引言 在之前的研究中，由于我国实际上没有做空机 投资者非理性行为是否会影响股票价格和收益 制，所以在测度投资者情绪时经常采用市场换手率、 是现代金融理论和行为金融理论争论的焦点。现代金 封闭式基金折价和投资者开户增长率等指标，但是， 融理论认为，在某种程度上某些投资者可能并非理 自从 2010 年以来，股指期货市场出现，投资者可以 性，但由于他们之间的交易是随机进行的，所以他们 利用股指期货来做空股票，因此之前的测度中，市场 的非理性会相互抵消， 股票价格不会受到影响。 因此， 的消极情绪反映的不够充分， 但是， 有了做空机制后， 股票的价格等于其基础价值，股票的预期收益由其基 市场的消极情绪得以反映。 ...
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...An research of the seasonalities in the Pakistan’s Stock Market: Monday, January and the Ramadan Effect . Hanan Abdul Razaq 10th March 2009 Acknowledgements I am indebted to my dissertation lecturer for his help and guidance throughout the project. I would also like to thank my family and friends for their unconditional support and understanding throughout the year specially during the crucial times when my head Was down but they gave me that extra strength and support to push forward and Complete this project on time. Abstract In recent years, we have observed an increase in interest from both individuals’ institutions and investors in emerging markets. It’s important for the investors to know whether the market is efficient, inefficient or neutral. This study wishes to document the Pakistani market and their Stock Exchange by looking at the existence of Calendar Anomalies such Monday effect and the January effect. Secondly this study investigates the presence of the so-called Moving Calendar anomaly, the “Ramadan Effect”. The following three indices are used: KSE-100, LSE-25 and ISE-10. An OLS regression and a GARCH (1,1) methodology will be used for the testing daily, weekly and monthly returns. The findings of this study shows the existence of Monday effect in ISE-10 index using...
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...Stock Car History Have you ever thought about stock car history and how it grew so big in today’s society? Stock car racing is a form of automobile racing found mostly in the United States, Canada, New Zealand, Australia, Great Britain, New Mexico, Brazil, and Argentina. In the US today the big races are the ones done by the professionals, and that is in NASCAR. NASCAR is a sport where men and women can race automobiles that are upgraded for speed and aerodynamics. On some tracks race car drivers can drive up to 200 and 600 miles at speeds of 200 miles an hour. Racing was started by moonshines back in the 1920s where they had to out run the law because they were smuggling alcohol which in there time was banned because of 18th amendment, and...
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...customers and the way they buy I will have to go into an existing clothes store and see the way they act and what they actually buy. I will create an observation checklist which will show gender, rough age, whether they buy anything and what they buy. I would do this for several hours until I have details of 200 people entering the shop.There are lot of similar stores like this I could go and visit especially in the Skelmersdale concourse. Also as there are other business which are a lot like mine but are online, I would look at them and see how they go about things I wouldn’t help me in many ways but I could get a better idea of the stock and the price they go for. To help identify my competition, I need to visit the local town centre to locate any similar businesses. Another way of doing this is to go online and look at the local areas. Research proposal. For my primary methods I have decided I will go to other clothes stores and see what the public behave like and what stores they prefer and the type of things they buy and what price range they go for, this method wont affect my business as it will only take one day for doing this. Another primary method I will do is use some questionnaires will ask questions about where people shop, why, online or in town, the price, the latest trends and fashions...
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...Name: Billy (Management International Class 2013) Subject: Business Research method Student Number: B1024131009 Title: Capital Structure Effect on Indofood Financial Performance Problem Formulations: * How Indofood manages their Capital structure with their low cost carrier? * What are the Strategic Investment that the Indofood Company? * How was the Capital Flow of Indofood Company? * How was the Capital Structure affect the Performance and the profitability of Indofood? No. | Name of Researcher (Year of Research) | Tittle | Problem/aim of research | Methodology | Results | Company/Product | 1. | Sven-Olov Daunfeldt and Fredrik Hartwig, 2008. | What Determines the Use of Capital Budgeting Methods? Evidence from Swedish listed companies | Many methods can be used for Capital Budgeting that will affect the other variable such as leverage, etc. | Questionnaire was sent in 2005 and 2008 to the CFOs of all Swedish companies listed on the Stockholm Stock Exchange. From that we can conclude what determine it. | The total use of capital budgeting methods is lower in Swedish companies compared to U.S. and continental European companies | Companies listed on the Stockholm Stock Exchange | 2 | Patricia A. Ryan and Glenn P. Ryan, 2002. | Capital Budgeting Practices of the Fortune 1000:How Have Things Changed? | Prior studies spanning the past four decades show financial managers prefermethods such as internal rate of return or non-discounted payback models over netpresent...
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...DO YOU CHOOSE A GOOD RESEARCH TOPIC? GIVE 5 EXAMPLES OF A GOOD RESEARCH TOPIC AND JUSTIFY WHY YOU CHOOSE THEM, I.E. PROBLEM ISSUES IN EACH TOPIC AND WHY THEY MUST BE RESEARCHED UPON. (NOT LESS THAN 2000 WORDS). WHAT IS RESEARCH? Research has been defined by different people in different ways. At any point in time, depending on what an individual is doing in relation to a particular topic or subject area of study, there is the tendency that one may deem that activity as a form of research. Research therefore cuts across all facets of human endeavour; in the sciences, humanities, electronics etc. These diversities create room for one to distinguish between what scientific research is and what a normal review of information is. “In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge”. MartynShuttleworth (2008). Research involves gathering of information and the examination of all the pieces of information gathered. The central goal of a good research is to come out with findings that add to the body of knowledge and available literature in that area of study. Martyn further explained that “reading a factual book of any sort is a kind of research. Surfing the internet or watching the news is also a type of research.” However, defining research this way tends to present a narrow view of research and does not convey in detail what scientific research is about. “Science...
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...Nature of Research | 1.1. Why Business Research is Needed | * To make a decision on business strategy * To analyze market * To understand and predict demand * To learn about competition * To improve marketing and sales efforts * To introduce new products and services * For many other reasons | | | 1.2. Defining Research | 1.2.1. What is Involved in Research | A research involves the following: | What is Involved in Research | Activity | What Kind | Why | inquiry investigation experimentation examination creation | systematic studious critical diligent exhaustive orderly objective logical | to discover facts to revise accepted principles or conclusions to find new truths to avoid status quo | | 1.2.2. What is Research | Thus Research is | * A systematic, studious inquiry to discover facts, to find new truths, and to avoid status quo. * An orderly, exhaustive investigation to revise accepted principles or conclusions. * A diligent, objective examination to find new truths and revise accepted principles or conclusions. * Other … | 1.2.3. Is There a Better Definition of Research? | One important element in research is that of curiosity! | Research requires of a person an attitude of inquisitiveness: | * I wonder how … * I wonder why … * I wonder what … * I wonder where … * I wonder … | The researcher seeks to know reasons and causes behind events and behavior. | Research is an activity...
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...Journal of Accounting and Economics 31 (2001) 255–307 Empirical research on accounting choice$ Thomas D. Fieldsa, Thomas Z. Lysb,*, Linda Vincentb b Graduate School of Business Administration, Harvard University, Boston, MA 02163, USA Kellogg Graduate School of Management, Northwestern University, Evanston, IL 60208, USA Received 21 January 2000; received in revised form 31 January 2001 a Abstract We review research from the 1990s that examines the determinants and consequences of accounting choice, structuring our analysis around the three types of market imperfections that influence managers’ choices: agency costs, information asymmetries, and externalities affecting non-contracting parties. We conclude that research in the 1990s made limited progress in expanding our understanding of accounting choice because of limitations in research design and a focus on replication rather than extension of current knowledge. We discuss opportunities for future research, recommending the exploration of the economic implications of accounting choice by addressing the three different reasons why accounting matters. r 2001 Published by Elsevier Science B.V. JEL classification: M41 accounting Keywords: Capital markets; Accounting choice; Voluntary disclosure; Accounting judgments and estimates; Earnings manipulation $ We are grateful for comments received from Ronald Dye, participants of the 2000 Journal of Accounting and Economics conference, the editors Ross Watts and Douglas...
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...Chap -1 Production management DEFINITION As any premises in which person are employed for the purpose of making altering , repairing ornamenting , finishing , clearing , washing , breaking , adopting for sale any article PRODUCTION AS THE CONVERSION PROCESS Production process of changing input into output . INPUT Lab our Material Equipment Capital Management OUTPUT Goods and services Conversion Process COMPARISION Actual V/s Planned The input to the production system are raw material , parts , energy , production schedules , information technology , capital or management and output are the goods , transported goods ,delivered message , services customers. For example :- 1) In manufacturing organization like steel plant , input are materials like iron , ore , coke , lime stone ,etc 2) In service organization like bank , inputs are customer and output are serviced customer COMPONENTS OF PRODUCTION FUNCTION PLANNING | * Product selection and design * Process selection and planning * Facility location * Facility layout and materials handling * Capital planning * Forecasting * Production planning | ORGANISING | * Work study and job design | CONTROLLONG | * Production control * Inventory control * Quality control * Maintenance and replacement * Cost of reduction and cost control | 1. Production selection and design -A right kinds of products and good design of the product are crucial for the...
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...To: Professor SIyi Li Ph.D. CFA From: Daniela Dinu Date: [ 9/12/2012 ] Re: Academic Research of Bernard and Thomas (1990) Authors Bernard and Thomas wrote an article titled “Evidence that Stock Prices Do Not Fully Reflect the Implications of Current Earning for Future Earnings.” We will look at the main questions explored, main findings, and consider the conclusion. Finally, we will discuss some implications of this paper causes for practitioners. The main research question in the paper is weather stock prices reflect implications of current earnings for future earnings. This means that information weather positive or negative is not immediately absorbed and shown by the market. This is a very important question because we are expecting the market to fluctuate and absorb new information or announcements immediately. This actually shows that there isn’t much activity on the day of the announcement rather in a later quarter. In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "information efficient". In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made. (Wikipedia 2012) The findings in the paper are inconsistent with the definition because what the authors are trying to shows us is that the market doesn’t reflect this information right away but it does allow us to predict the next four quarters....
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...UNDERSTANDING ACADEMIC RESEARCH IN ACCOUNTING: A GUIDE FOR STUDENTS Teresa P. Gordon College of Business and Economics University of Idaho Moscow, Idaho USA Jason C. Porter College of Business and Economics University of Idaho Moscow, Idaho USA ABSTRACT The ability to read and understand academic research can be an important tool for practitioners in an increasingly complex accounting and business environment. This guide was developed to introduce students to the world of academic research. It is not intended for PhD students or others who wish to perform academic research. Instead, the guide should make published academic research more accessible and less intimidating so that future practitioners will be able to read empirical research and profitably apply the relevant findings. The guide begins by examining the importance of academic research for practitioners in accounting and next reviews the basics of the research process. With that background in place, we then give some guidelines and helpful hints for reading and evaluating academic papers. This guide has been used for several years to introduce master’s degree students to academic literature in an accounting theory class. After reading this guide and seeing a demonstration presentation by the professor, students have been able to successfully read and discuss research findings. Key words: Understanding empirical research, supplemental readings, importance of academic research, incorporating academic research in classroom...
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