Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Calendar Studies
These attempted to predict rates of return during a calendar year and examine if there is any particular observable pattern in the rates of return on the stocks that would allow investors to predict returns on stocks in advance. They also test for the presence of any irregularities. Besides "January Anomaly", they also consider a variety of other daily and weekly regularities.
The January Anomaly: This was proposed as a unique trading rule to make use of tax selling. Most investors are observed to adopt tax selling at the end of the year to establish losses on stocks that have declined and re-acquire the same shares in the next year or buy other stocks that are attractive. This tendency of the investors leads to a downward pressure on the stock prices during the end of the year (November and December) and positive pressure during the beginning (January) of the next year. This is termed January Anomaly. The advocates of the efficient markets believe that this kind of seasonal pattern does not last for a longer period as it is likely to be eliminated by arbitrageurs' action of buying in December and selling in January of the next year.
Several studies conducted by different people at different points of time supported this January Anomaly. December trading volume was found to be abnormally high for the stocks that have declined during the previous year and the volume was low for stocks that have experienced large gains.
Another observation confirmed that the price patterns on the last day of December and the first four days of January support the anomaly. The presence of transaction costs does not deter the arbitrageurs from engaging in the January tax selling anomaly.
One of the studies indicated the existence of a negative relationship between size and abnormal returns. More than 50% of the January effect would be concentrated in the first week of trading, particularly on the first day of the year. In addition, a non-linear relationship is found to exist between dividend yields and stock returns in January. A strong seasonal pattern was also observed because the dividend yield-stock return relationship existed only during January. The year end effect was also observed for small firms particularly during the last day of the year with above normal trading activity continuing in January.
All the studies reveal that the January Anomaly is intriguing because it is pervasive. The seasonal impact also influences the dividend yield effect and trading volume, and a tax-loss explanation of this anomaly has received a mixed support.
Essential of sound capital mix
Introduction of Financial Management Accounting has evolved and emerged within response to the social and economic needs of the society. The procedure of book keeping (mainten
#What are the food and beverages industry financial ratios for 2011,2010,2009? 1. Liquidity(current/quick), Asset Management(Inventory Turnover, total assets turnover),Debt Menagem
Enumerate the field of study dealing with finance The field of study dealing with finance was treated as encompassing three interrelated aspects of raising and administering re
Define the concept of a real option. Discuss some real options a firm can be confronted with when investing in real projects. A positive APV project is accepted under the supposi
Q. Explain Short- and long-term financing mix? In forming a fresh business there is no business history to present to the bank thus there is additional uncertainty which will n
The asset that acts as a collateral for an asset-backed security can either be an amortizing or a non-amortizing asset. In an amortizing asset,
Assume that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the startup stage. However, you remain convinced that
Q. What do you signify by Cost of Capital? What do you signify by 'Cost of Capital'? What is its meaning and what are the problems in determination of cost of capital? Ans.
Q. What do you mean by Misappropriation Of Fund? Misappropriation Of Funds allotted for specific works under capital or Revenue demand but the expenditure is incurred for anoth
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd