Do high-tech stock prices revert to their ‘fundamental’ value?

2004 ◽  
Vol 14 (7) ◽  
pp. 461-476 ◽  
Author(s):  
Leonardo Becchetti ◽  
Fabrizio Adriani
Keyword(s):  
Stock Prices ◽  
High Tech ◽  
Fundamental Value

Do high-tech stock prices revert to their 'fundamental' value?

2001 ◽  
Vol -1 (1) ◽  
pp. 1-1
Author(s):  
Leonardo Becchetti ◽  
Fabrizio Adriani
Keyword(s):  
Stock Prices ◽  
High Tech ◽  
Fundamental Value

The Effects of High-Tech Companies' Strategic Alliance Announcements on the Stock Prices of the Relevant Companies: A Comparative Analysis of Indirect Benefits for Taiwan's High-Tech Industry Versus Other Industries 1998–2002

2005 ◽  
Vol 08 (02) ◽  
pp. 235-250
Author(s):  
Chiung-Ju Liang ◽  
Ming-Li Yao ◽  
Jung-Chu Lin
Keyword(s):  
Strategic Alliances ◽  
Stock Prices ◽  
Stock Price ◽  
Strategic Alliance ◽  
High Tech ◽  
High Tech Industry ◽  
Indirect Benefits ◽  
Common Trend ◽  
The World ◽  
Indirect Impact

In recent years, the formation of strategic alliances has become an increasingly common trend among developing countries around the world. In spite of this, the numerous attempts to comprehensively review the research on the correlation between these strategic alliances and stock prices over the years have, by and large, limited their discussion to how the stock price of a corporation responds to its announcement that it is forming a strategic alliance. Only a few studies have, however, discussed the announcement's indirect impact on the stock prices of investing companies that have entered into such strategic alliances. It is for this reason that we conduct an event study and develop an empirical model to measure that indirect impact on the stock prices of investing companies engaging in strategic alliances with Taiwan's high-tech industry from 1998 to 2002, while also discussing the market's different responses in their stock prices according to various industrial types that have been used to classify these investing companies.

The co-movement of stock prices, herd behaviour and high-tech mania

2008 ◽  
Vol 18 (16) ◽  
pp. 1343-1350 ◽  
Author(s):  
Wen-Chung Guo ◽  
Hsiu-Ting Shih
Keyword(s):  
Stock Prices ◽  
High Tech ◽  
Herd Behaviour

scholarly journals Relative Versus Fundamental Valuation: An Empirical Study of US Biotechnology Firms Around the 2000 High-Tech Bubble

2020 ◽  
Vol 11 (6) ◽  
pp. 226
Author(s):  
Dzung Viet Nguyen
Keyword(s):  
Stock Market ◽  
Firm Valuation ◽  
High Tech ◽  
Biotechnology Firms ◽  
Residual Income Model ◽  
Relative Value ◽  
Before And After ◽  
Fundamental Value ◽  
Income Model ◽  
Fundamental Values

This study is related to the issue of whether the stock market reflects the fundamental value of high-tech firms around the 2000 high-tech bubble. We extend the literature on firm valuation by exploiting the conceptual difference between intrinsic and relative values. We apply the residual income model and valuation multiples to estimate these two values respectively and make a comparison for a sample of biotechnology firms. Under realistic assumptions, it seems that estimated fundamental values of these firms fail to be reflected by the stock market. Their market valuation is rather based on relative value for both periods before and after the fall of high-tech stocks.

New Results on Stock Prices and Fundamental Value

2001 ◽  
Vol 10 (1) ◽  
pp. 67-69 ◽  
Author(s):  
Douglas J. Lamdin
Keyword(s):  
Stock Prices ◽  
Fundamental Value

Does the sentiment of investors explain differences between predicted and realized stock prices?

2016 ◽  
Vol 33 (3) ◽  
pp. 403-416 ◽  
Author(s):  
Stella N. Spilioti
Keyword(s):  
Stock Prices ◽  
Psychological Factors ◽  
Stock Exchange ◽  
Estimation Errors ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Macroeconomic Conditions ◽  
Fundamental Value ◽  
Using Data ◽  
Fundamental Values

Purpose The purpose of this paper is to use the Barberis et al. (1998)’s valuation model to calculate the fundamental value of a stock and examine whether the differences between predicted and realized stock prices are explained both by psychological factors (that affect investor reaction to information) and by key macroeconomic variables. Design/methodology/approach This paper adopts a time-series analysis, as well as a panel data approach, to examine whether the price deviations from fundamental values are because of macroeconomic and psychological factors, using data from the London Stock Exchange. Findings The results indicate that these differences are explained by important macroeconomic variables, as well as by the sentiment of investors (that is used as a proxy of the psychological factors). Originality/value Based on the above results, this paper suggests that the price deviations from fundamental values are not treated as model estimation errors as proposed by Penman and Sougiannis (1998) but rather as deviations that are because of psychological factors, as well as to macroeconomic conditions.

Short-sale prohibitions, firm characteristics and stock returns: evidence from Chinese market

2017 ◽  
Vol 7 (4) ◽  
pp. 407-428 ◽  
Author(s):  
Rui Li ◽  
Jiahui Li ◽  
Jinjian Yuan
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Short Selling ◽  
Control Group ◽  
Performance Difference ◽  
Chinese Market ◽  
Content Type ◽  
Short Sale ◽  
Event Date ◽  
Fundamental Value

Purpose The purpose of this paper is to empirically analyze the impacts of short prohibitions on stock prices. Design/methodology/approach The authors adopt event study in this paper. First, the authors match each shortable stocks with one unshortable stocks by the propensity score matching method. Second, the authors check the performance difference between treatment group and control group after the event date. Third, the authors check the performance difference among sub-groups sorted by other factors associated with stock returns. Findings The authors find that stocks do not decline necessarily after removal of short prohibitions; only those heavily overpriced stocks, such as small stocks, lower B/M or P/E stocks and higher turnover stocks, decline significantly. Research limitations/implications The media falsely stated that short selling lead to market crash; otherwise, short selling is beneficial for improving market efficiency as it is helpful for keeping overpriced stocks in line with the fundamental value. Originality/value This is the first paper showing that removal of short prohibitions only impacts heavily overpriced stocks significantly, which is valuable for policy making.

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