Modelling of Selected S&P 500 Share Prices

Catering Through Nominal Share Prices

We develop and test a catering theory of nominal stock prices. The theory predicts that managers set share prices at lower levels when investors place higher valuations on low-price firms and at higher levels when investors favor high-price firms. Using several measures of time-varying catering incentives based on valuation ratios, split announcement effects, and future returns, we find empiric...

Modelling Stock Prices

The impact of ICT-enabled offshoring announcements on share prices

Purpose To determine the impact of announcements regarding ICT-enabled offshoring on the share prices of public companies. Method/approach – The study is carried out by means of an event study. Findings The finding from this research is that investors do not tend to reward offshoring announcements. It is most likely that the value of the firm will be perceived as unchanged or if there is a reac...

The Relationship between Online Attention and Share Prices

Our objective is to explore the correlation between stock market and investors’ attention in China’s stock market through empirical analysis method. We use search volume (SV) to represent individual investors’ attention. We choose 1380 a-share stocks in SSE and SZSE from 2008 to 2011. After summarizing time series data of different cross-sections, we get the panel data. According to the fixed e...

Stamp duty on shares and its effect on share prices

This paper provides a discussion of stamp duty and its effects. This is followed by an empirical study using changes in the rate of stamp duty in the UK as natural experiments. Because shares will be affected differently depending on how frequently they are traded, we can employ a difference-in-differences methodology. We find that the announcements of cuts in stamp duty had a significant and p...