Original scientific paper
Large share price movements, reasons and market reaction
Julijana Angelovska
orcid.org/0000-0002-7638-2389
; Faculty of Economics, University of Tourism and Management, Macedonia
Abstract
The objective of this paper is to examine the reasons of firm-level one-day share price shocks and post -shock reaction. Positive and negative shocks are defined and detected by using the official news providers, which are required to disclose price-sensitive information. No information that accompanied one-day share price shocks was found. It is suggested that irrational behavior by uninformed investors drives the stock market returns. The reaction to these large price movements has been investigated as part of the overreaction hypothesis and the results were supportive of short-term price reversal in the case of price declines.
Keywords
large price movements; information and market efficiency; overreaction; price reversals; Macedonian Stock Market
Hrčak ID:
161351
URI
Publication date:
29.6.2016.
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