Discuss two examples of anchoring in financial market

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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

Reference no: EM131888758

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Reviews

len1888758

3/6/2018 1:26:16 AM

Please note that: All arguments must be critically evaluated on the basis of the latest academic literature and evidence from media or other online sources must be appropriately cited. The use of literature must be fully referenced and a reference list must be provided at the end of the assignment. The assignment should be around 1,500 words. The weights of each of the three subquestions could be used as a rough guide on the number of words for each subsection. Critical evaluation involves both the demonstration of strong and weak aspects of the paper.

len1888758

3/6/2018 1:26:07 AM

Assignments must be typed or word-processed on A4 paper using 1.5 or double spacing and with margins of 2-3 cm. Pages should be numbered and stapled together in the top left hand corner. Overall word limit: 1,500 words. The word count should include all the text (plus endnotes and footnotes), but exclude diagrams, tables, bibliography, references and appendices. You will be also required to submit an electronic copy of your assignment which will be put through the plagiarism detection service.

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