S P 500 Index Changes And Investor Awareness
DOWNLOAD
Download S P 500 Index Changes And Investor Awareness PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get S P 500 Index Changes And Investor Awareness book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
S P 500 Index Changes And Investor Awareness
DOWNLOAD
Author : Honghui Chen
language : en
Publisher:
Release Date : 2005
S P 500 Index Changes And Investor Awareness written by Honghui Chen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
We find that, on average, firms added to the Samp;P 500 index experience a permanent price increase, while those deleted from it suffer only a temporary price decline. Existing theories, such as a downward sloping demand curve, liquidity, and information, fail to explain the asymmetric response. We propose a new explanation for the observed price patterns: changes in investor awareness. Investors become more aware of a stock upon its addition to the Samp;P 500 index but do not become similarly unaware of a stock following its deletion. This results in a significant price increase after an addition but not an equivalent decline after a deletion. Consistent with our hypothesis, we find that Merton's (1987) measure of awareness improves after an addition but remains essentially unchanged after a deletion. The price reaction is related to changes in the measure of awareness.From a practical standpoint, our results suggest that index fund managers who are not constrained by tracking error minimization are better off not trading on the effective date. Rather, they may be able to benefit their shareholders by executing purchases of additions upon announcement, but waiting to sell deleted firms until well after the effective date.
Investor Awareness And Market Segmentation
DOWNLOAD
Author : Honghui Chen
language : en
Publisher:
Release Date : 2002
Investor Awareness And Market Segmentation written by Honghui Chen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2002 with categories.
Several studies have found that stock price changes resulting from firms added to the Samp;P 500 index can be best exp lained by a downward sloping demand curve. In this paper, we study price effects around both additions and deletions and find that the price effect of index changes is consistent with Merton's (1987) investor-awareness and market segmentation hypothesis. We find that the reduction in shadow cost of incomplete diversification that follows additions is correlated with abnormal returns accruing to the added stocks. We also find that the asymmetric price effects of additions and deletions that have not been explained by empirical studies thus far are consistent with market segmentation.
Market Capitalization Changes For S P 500 Inclusions And Exclusions
DOWNLOAD
Author : Colin Tissen
language : en
Publisher: GRIN Verlag
Release Date : 2015-06-19
Market Capitalization Changes For S P 500 Inclusions And Exclusions written by Colin Tissen and has been published by GRIN Verlag this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-06-19 with Business & Economics categories.
Research Paper (postgraduate) from the year 2015 in the subject Business economics - Investment and Finance, grade: 9.0/10, Maastricht University, language: English, abstract: Previous research has already proven that firms which get included in or excluded from the S&P 500 index experience stock price changes that ultimately result in market capitalization changes. The causes of these changes has extensively been examined, but a consensus on the true cause has not yet been reached. In this paper the market capitalization effect is examined by making a distinction between the reasons for inclusions and exclusions. It is argued that expected events, like bankruptcy and index-downgrading, have lower price effects than unexpected events, which include mergers and acquisitions. By usage of a regression analysis it is concluded that there is no difference in price effects between the individual reasons for inclusions and exclusions. However, when the reasons are grouped into unexpected and expected events there is a significant effect for the inclusions. Firms which expectedly enter the index experience lower market capitalizations changes than firms which unexpectedly entered the index. This effect could not be proved for exclusions.
The Price Response To S P 500 Index Additions And Deletions
DOWNLOAD
Author : Honghui Chen
language : en
Publisher:
Release Date : 2003
The Price Response To S P 500 Index Additions And Deletions written by Honghui Chen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with categories.
We study the price effects of firms added to and deleted from the Samp;P 500 index and document an asymmetric price response: there is a permanent increase in the price of added firms but no similar decline for deleted firms. These results are at odds with extant explanations of the effects of Samp;P 500 index changes which imply a symmetric price response to additions and deletions. A possible explanation for asymmetric price effects arises from changes in investor awareness. Results from our empirical tests support the thesis that changes in investor awareness contribute to the asymmetric price effects of Samp;P 500 index additions and deletions.
Control Your Cash
DOWNLOAD
Author : Greg McFarlane
language : en
Publisher: Greg McFarlane Betty Kincaid
Release Date : 2010-06
Control Your Cash written by Greg McFarlane and has been published by Greg McFarlane Betty Kincaid this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-06 with Business & Economics categories.
"A 14% credit card rate! What a deal!" "Where it says 'adjustable' here on my mortgage - that means 'fixed', right?" "Work until I retire, then collect Social Security. That's my wealth plan." If you've ever wondered how your money works, where it goes or how it grows, stop wondering. "Control Your Cash: Making Money Make Sense" deconstructs personal finance so that everyone but the hopelessly inept can understand it. Inside the book, you'll learn: [ how to get your bank accounts, credit cards and other financial instruments to work for you, and not the other way around [ the right way to buy a car (i.e. with the salesman cursing your name as you drive away) [ where and how to invest, and what all those symbols, charts and graphs mean [ how to turn expenses into income, and stop living paycheck-to-paycheck [ whom the tax system is stacked against (hint: it's most of us) and how to use that to your advantage [ the very key to wealth itself. In fact, the authors thought it was so important they put it on the cover so you can read it even if you're too cheap to buy the book: Buy assets, sell liabilities. Finally, a book that explains personal finance not only in layman's terms, but in detail. If you can read, and have any capacity for self-discipline, invest a few bucks in "Control Your Cash" now and reap big financial rewards for the rest of your life.
Liquidity And Asset Prices
DOWNLOAD
Author : Yakov Amihud
language : en
Publisher: Now Publishers Inc
Release Date : 2006
Liquidity And Asset Prices written by Yakov Amihud and has been published by Now Publishers Inc this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Business & Economics categories.
Liquidity and Asset Prices reviews the literature that studies the relationship between liquidity and asset prices. The authors review the theoretical literature that predicts how liquidity affects a security's required return and discuss the empirical connection between the two. Liquidity and Asset Prices surveys the theory of liquidity-based asset pricing followed by the empirical evidence. The theory section proceeds from basic models with exogenous holding periods to those that incorporate additional elements of risk and endogenous holding periods. The empirical section reviews the evidence on the liquidity premium for stocks, bonds, and other financial assets.
Esg And Responsible Institutional Investing Around The World A Critical Review
DOWNLOAD
Author : Pedro Matos
language : en
Publisher: CFA Institute Research Foundation
Release Date : 2020-05-29
Esg And Responsible Institutional Investing Around The World A Critical Review written by Pedro Matos and has been published by CFA Institute Research Foundation this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020-05-29 with Business & Economics categories.
This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.
Trillions
DOWNLOAD
Author : Robin Wigglesworth
language : en
Publisher: Penguin UK
Release Date : 2021-10-14
Trillions written by Robin Wigglesworth and has been published by Penguin UK this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-10-14 with Business & Economics categories.
Best books of 2021, Financial Times 'Grab some popcorn and take a front row seat, because Robin Wigglesworth has an astonishing story to tell you' Tim Harford, author of How to Make the World Add Up 'A fascinating account of an investment revolution' Ian Fraser, Literary Review 'A magisterial, delightfully written history offering up portraits of the academic scribblers and entrepreneurial practitioners who created the index-fund revolution' The Wall Street Journal 'Wigglesworth has written an important book' Patrick Hosking, Financial Editor, The Times 'A terrific read' Gregory Zuckerman, author of The Man Who Solved the Market 'A fascinating journey and a crucial book for anyone trying to understand the financial markets' Bradley Hope, author of Billion Dollar Whale --------------------------------------------------------------------------------------------------------- In Trillions, Financial Times journalist Robin Wigglesworth unveils the vivid secret history of index funds, bringing to life the colourful characters behind their birth, growth and evolution into a world-conquering phenomenon. It is the untold story behind one of the most pressing financial uncertainties of our time. --------------------------------------------------------------------------------------------------------- 'An easy-to-understand and fun read, full of lively characters and little-known details of how finance really works today' Gillian Tett, author of Anthro-Vision
History Of The Railroads And Canals Of The United States
DOWNLOAD
Author : Henry Varnum Poor
language : en
Publisher:
Release Date : 1860
History Of The Railroads And Canals Of The United States written by Henry Varnum Poor and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1860 with Canals categories.
The Only Guide To A Winning Investment Strategy You Ll Ever Need
DOWNLOAD
Author : Larry E. Swedroe
language : en
Publisher: Macmillan + ORM
Release Date : 2005-01-01
The Only Guide To A Winning Investment Strategy You Ll Ever Need written by Larry E. Swedroe and has been published by Macmillan + ORM this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005-01-01 with Business & Economics categories.
Investment professional Larry E. Swedroe describes the crucial difference between "active" and "passive" mutual funds, and tells you how you can win the investment game through long-term investments in such indexes as the S&P 500 instead of through the active buying and selling of stocks. A revised and updated edition of an investment classic, The Only Guide to a Winning Investment Strategy You'll Ever Need remains clear, understandable, and effective. This edition contains a new chapter comparing index funds, ETFs, and passive asset class funds, an expanded section on portfolio care and maintenance, the addition of Swedroe's 15 Rules of Prudent Investing, and much more. In clear language, Swedroe shows how the newer index mutual funds out-earn, out-perform, and out-compound the older funds, and how to select a balance "passive" portfolio for the long hail that will repay you many times over. This indispensable book also provides you with valuable information about: - The efficiency of markets today - The five factors that determine expected returns of a balanced equity and fixed income portfolio - Important facts about volatility, return, and risk - Six steps to building a diversified portfolio using Modern Portfolio Theory - Implementing the winning strategy - and more.