Search results for "FINANCIAL ECONOMICS"
showing 10 items of 277 documents
Herding in the cryptocurrency market: CSSD and CSAD approaches
2018
Abstract We analyse the existence of herding in the cryptocurrency market through the cross-sectional standard (absolute) deviation of returns. Our results show that extreme dispersion of returns is explained by rational asset pricing models although it is possible to observe herding during down markets, which highlights the inefficiency and risk of cryptocurrencies. We also observe that the smallest digital currencies are herding with the largest ones, thus traders base their decisions on the performance of the main cryptocurrencies. However, the herding phenomenon cannot be solely attributed to Bitcoin, since the rest of the market is not herding with the main cryptocurrency.
Intrinsic value in crypto currencies
2021
Abstract Over the last years, cryptocurrencies have acquired a growing social and economic interest. The most representative features of this new phenomenon are strong price increases and high volatility. The investigations developed in this field are not excessively numerous nor unanimous. Some researches consider this phenomenon to be a bubble, since they don't agree that the price pattern of the cryptocurrencies is justified or explained by their intrinsic value. The present article aims to provide a theoretical framework for the assessment of these new realities embodied by cryptocurrencies. We have created a model which differentiates two types of cryptocurrencies: the cryptocurrencies…
What factors drive returns on initial coin offerings?
2020
Abstract In recent years, initial coin offerings (ICOs) have received considerable attention as a new form of crowdfunding. Because of the rapid growth in their popularity, ICOs have become a prominent research topic. However, the lack of knowledge about the nature of this kind of financial operation inevitably raises several important unanswered questions. This study starts by providing a comprehensive description of the characteristics, benefits, and risks associated with ICOs. Then, using a panel data set comprising daily information for 125 ICOs (44,217 observations gathered from December 2017 to December 2018), this study explores the influence of the ICO presale period, ICO category, …
Cryptocurrency as an Investment Instrument in a Modern Financial Market
2019
This paper considers the development of attractive strategies featuring cryptocurrency assets, considering their costs and potential risks. The object of analysis in this paper is cryptocurren- cy as an investment instrument. The main hypothesis of the research is that modern portfolio theory can be applied to cryptocurrency investments to design an investment portfolio with appropriate risk and profitability characteristics. The authors of the paper: (i) place crypto- currencies in the context of modern financial market and financial technology development; (ii) develop assessment criteria for determining attractiveness of individual cryptocurrencies; and (iii) develop recommendations for …
Museums and public value – creating sustainable futures
2013
Economic income, historical costing income and conservatism
2020
The paper intends to contribute at the debate on the ‘Evolutionary Advantage of Cost Accounting and Conservatism’ ( Accounting, Economics and Law: A Convivium, 2019. 9. issue) , founded on Braun’s study (2016) about The Ecological Rationality of Historical Costs and Conservatism. Moving from the IASB Conceptual Framework (2013) it stresses the renewed interest in income concept. The economic financial crisis of 2008-9 stimulated discussions between the traditional ‘received view’ of ‘cost-revenue approach’ (historical cost accounting) and ‘balance-sheet approach’ (‘current values’ and ‘present values’, that is ‘economic values’). Revaluations of assets, liabilities and owners’ equities are …
Weibull Model for Dynamic Pricing in e-Business
2011
As is the case with traditional markets, the sellers on the Internet do not usually know the demand functions of their customers. However, in such a digital environment, a seller can experiment different prices in order to maximize his profits. In this paper, we develop a dynamic pricing model to solve the pricing problem of a Web-store, where seller sets a fixed price and buyer either accepts or doesn’t buy. Frequent price changes occur due to current market conditions. The model is based on the two-parameter Weibull distribution (indexed by scale and shape parameters), which is used as the underlying distribution of a random variable X representing the amount of revenue received in the sp…
Uninformed Traders in European Stock Markets
2010
A fully informed agent bets with an uninformed over the capital gains of an asset. A divide-and-choose idea is adapted to induce both trade and revelation of information, but in equlibrium the uninformed buys high and sells low if he is downside risk averse. The result may be seen as an informed-price-maker counterpart of some findings of Glosten-Milgrom (1985) and Kyle (1985) on uninformed agents trading in financial markets.
Problemas en la estimación y en el contraste de los rendimientos anormales a largo plazo: Estado de la cuestión
2002
-Jose.E.Farinos@uv.es -Ana.M.Ibanez@uv.es El paradigma de la eficiencia ha sido puesto en entredicho en las últimas décadas como consecuencia de la obtención de rendimientos anormales, estadística y económicamente significativos, durante amplios periodos de tiempo tras algunas importantes decisiones empresariales. No obstante, los problemas conceptuales y estadísticos que presenta la medición y contrastación de los rendimientos anormales a largo plazo ha supuesto que la evidencia obtenida pase a calificarse como anomalía. Dada la escasa proliferación de este tipo de estudios en nuestro mercado y el desafortunado desarrollo de algunos de los existentes, en este trabajo presentamos estos prob…
Information and Investor Behavior Surrounding Earnings Announcements
2014
Preliminary version The goal of this paper is to analyze the impact of annual earnings announcements on the market through the order flow data in addition to the usual transaction data. In this respect, examining order flow data can potentially reveal valuable information which is not available from transaction data. In fact, the data allow us to test hypotheses about asymmetric information and investor behavior and to test if the behavior varies with investor sophistication. In addition, the paper tries to identify the determinants of the impact on a firm's value using assumptions about investor behavior.