Reference no: EM131888758 , Length: 5
Behavioural Finance - Individual Assignment
The following paper is given: Baker, M., Pan, X., Wurgler, J., (2012), "The effect of reference point prices on mergers and acquisitions", Journal of Financial Economics, 106, 49-71.
1) Critically evaluate the paper by Baker, Pan and Wurgler (2012) published in the Journal of Financial Economics.
2) Discuss the contribution of the paper to the substantive literature?
3) Present and discuss two examples of anchoring in financial markets (e.g. financial markets in general, corporate finance, personal finance). You may demonstrate cases reported in the existing bibliography or other public sources (appropriate referencing is required) or potential cases where anchoring could be demonstrated and investigation is required.
Assessment Criteria: The report will be assessed using the following criteria:
- Clarity of arguments
- Appropriate discussion and critical evaluation of the paper
- Understanding of the paper
- Demonstration and understanding of the existing literature
- Demonstration of relevant and original examples
- Presentation of the assignment
- Use of relevant literature
- Presentation
- Clarity of written material
As part of the assessment, written feedback summarizing the accomplishments and shortcomings of the report will be provided.
5 pages
REF: 20