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Conservatism Bias and Asset Price Overreaction or Underreaction to New Information in the Presence of Strategic Interaction

Chapter
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Part of the SpringerBriefs in Finance book series (BRIEFSFINANCE)

Abstract

This chapter examines how conservatism bias causes the asset price to overreact or underreact to new information in an asset market allowing for strategic interaction among traders. It proves that conservatism bias causes the asset price to overreact or underreact to different informational signals under different model parameter restrictions.

Keywords

Conservative Bias Asset Pricing Underreaction Model Parameter Restrictions Informative Signal 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© The Author(s) 2014

Authors and Affiliations

  1. 1.DeGroote School of BusinessMcMaster UniversityHamiltonCanada

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