Repository logo
 
Publication

Short-termism in Euronext Lisbon : an empirical analysis

2016Journal article Open access
Simple item page
dc.contributor.authorMatos, Pedro Verga
dc.contributor.authorCoelho, Miguel
dc.date.accessioned2017-12-06T09:40:46Z
dc.date.available2017-12-06T09:40:46Z
dc.date.issued2016
dc.description.abstractFor several years, there has been an ongoing debate about one inefficiency of markets, namely, stock market myopic behavior or stock market short-termism. This inefficiency is described as being a situation where investors overvalue short-term earnings and undervalue long-term earnings. This study examines whether the Portuguese stock market exhibits such preference for short-term earnings for the period between 2000 and 2008, using the Abarbanell and Bernard (2000) accounting-based valuation model, which generates predictions about how prices should relate to book value, as well as expected short-term and long-term earnings. Empirical analysis is not conclusive. In fact the evidence collected for this period based on Abarbanell and Bernard’s (2000) cross-section analysis favours market efficiency and therefore we reject the claim of market myopia. According to this result, the Portuguese stock market assigns the same weight for all the value components of listed companies. Based on an innovative panel data analysis, we collected evidence on which market assumes a particular form of short-termism, as investors value efficiently book value and short-term earnings, but undervalue long-term earnings. This paper contributes with quantitative evidence for the rising public policy debate regarding the scale of short-termism in capital markets.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.citationMatos, Pedro Verga and Miguel Coelho (2016). "Short-termism in Euronext Lisbon : an empirical analysis". European Journal of Management Studies, Volume 21, No 1: pp.49-75pt_PT
dc.identifier.issn2183-4172
dc.identifier.urihttp://hdl.handle.net/10400.5/14396
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.publisherISEG - Departamento de Gestãopt_PT
dc.relation.publisherversionwww.european-jms.compt_PT
dc.subjectMarket Myopiapt_PT
dc.subjectMarket Efficiencypt_PT
dc.subjectBook Valuept_PT
dc.subjectAbnormal Earningspt_PT
dc.subjectShort Termismpt_PT
dc.subjectEuronext Lisbonpt_PT
dc.subjectPortugalpt_PT
dc.titleShort-termism in Euronext Lisbon : an empirical analysispt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.conferencePlaceLisboapt_PT
oaire.citation.endPage75pt_PT
oaire.citation.issue1pt_PT
oaire.citation.startPage49pt_PT
oaire.citation.titleEuropean Journal of Management Studiespt_PT
oaire.citation.volume21pt_PT
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
5_EJMS_Vol21_Issue1_2016_short-termism_in_Euronext_Lisbon_an_empirical_analysis.pdf
Size:
801.27 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

2016, Volume 21, nº 1