Financial Behavior of Investors: Long-Run Overreaction Phenomenon in Euronext Stock Exchange

Aleknevičienė, Vilija; Aleksandravičiūtė, Inga

doi:10.1007/978-3-030-48531-3_5

Cited by 2 publications

(1 citation statement)

References 31 publications

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“…However, the situation has changed recently. [5] In addition to the rapid growth of technological stocks, it is worth noting another powerful trend that has developed in the stock market after the start of the COVID-19 pandemic. We are talking about a record increase in the value of assets associated with ESG criteria.…”

Section: Methodsmentioning

confidence: 99%

The relationship between socially responsible investment and the market value of an enterprise

et al. 2021

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It is widely acknowledged, that the consequences of the coronavirus crisis have increased the impact of the concept of sustainable development on the world economy. Statistical indicators evidence this. Among other things, an obvious trend in global stock markets is the shift in the focus of institutional and individual investors from profit-oriented investment in favor of socially responsible one. Demand for all “green” products stock market is constantly growing, ahead of the proposal. This, in turn, leads to an increase in the market value of the company. It is evident that compliance with the ESG criteria creates value. The paper analyzes the influence of conscious consumption trends on the stock market. The presence of the relationship between ESG factors and the market value of the company has been substantiated. On the example of a portfolio of “green” bonds demonstrates the effect of “green halo.” The main scientific problems in the area under study and the direction of further research are formulated. The potential of deliberate investment to create additional value for Russian enterprises has been determined.

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Section: Methodsmentioning

confidence: 99%

The relationship between socially responsible investment and the market value of an enterprise

et al. 2021

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Overreaction, Investor Sentiment and Market Sentiment of COVID-19

Loang

2022

Vision

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This study examines the impact of investor sentiment and market sentiment on overreaction in Europe and USA markets before and during COVID-19. The investor sentiment is calculated by the standard deviation, realized volatility, Parkinson’s estimator and Garman and Klass’s estimator. The market sentiment is measured by Business Confidence Index, Consumer Confidence Index, Labour Force Survey, Leading Index and Monetary Aggregates. The results of this study show that investor and market sentiments are correlated to stock return before COVID-19. Nonetheless, realized volatility is the only investor sentiment that is significant with the emergence of COVID-19. It shows that investors rely on the previous day’s stock prices to trade under market uncertainty. Market sentiment is observed to be insignificant in the pandemic. Furthermore, the existence of overreaction is detected in European portfolios but no evidence of overreaction is shown in the USA during pre-COVID-19. Surprisingly, overreaction is observed in Europe and USA markets in the pandemic. The USA market has a higher overreaction tendency than Europe. The results of this study assist academicians, practitioners and investors in understanding and creating awareness of the existence of market overreaction and its determinants before and during COVID-19.

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Financial Behavior of Investors: Long-Run Overreaction Phenomenon in Euronext Stock Exchange

Cited by 2 publications

References 31 publications

The relationship between socially responsible investment and the market value of an enterprise

The relationship between socially responsible investment and the market value of an enterprise

Overreaction, Investor Sentiment and Market Sentiment of COVID-19

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