Overview

Anomalies of capital market are primarily empirically observable effects, which speak against the hypothesis of a equivalent capital market. It gives for the individual effects in addition, different theoretical explanation beginnings.

Examples

• The calendar time effect describes a group of anomalies of capital market, which depend considerably on in which place in the calendar the empirical observation takes place.
  • The January effect describes an anomaly of capital market, which particularly leads to a regular over performance from small enterprises in January compared to other months.
  • Day OF the week effect
• The small firm effect describes the effect that small enterprises (Small Caps) exhibit a higher risk-set net yield on a long-term basis than large enterprises. This effect can be proven however only in certain periods of the past. The historical Small Cap effect cannot be transferred to the future. A something similar connection describes the Neglected firm effect, which proves a better performance for shares, which are observed less intensively by analysts. It is accepted that small enterprises stand usually less intensively under the observation of the analysts, then the statement of both effects goes into the same direction.
• Weather effect
• Neglected firm effect
• Mean Reversion effect
• Book value market value effect
• Winner loose effect

Articles in category "Anomaly of capital market"

We found here 14 articles.