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Abstract
The past decade has seen remarkable worldwide development in telecommunications and information technology. This process has occurred in the financial markets as well during the same period, manifesting as a significantly increased number of rumors reaching the Internet, which undoubtedly affected investors.
This study focuses on a distinct, specific event—namely, target price rumors (TPR)—and examining investors’ responses to such rumors. This study consists of two main tests. The first test involves a general observation of investors’ behavior in relation to TPR. The second test observes whether or not market behavior may be predicted for the post-publicity period, based on companies’ performance prior to that period. The first test’s results suggest that the rumor was mostly effective for a five-day period, beginning three days prior to publicity and ending the day thereafter. The second test’s results indicate an inverse trend between companies’ performance prior to publication and thereafter.
- © 2013 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600