ASSET PRICING IN A CAPITAL MARKET
Journal Title: Challenges of the knowledge society ( Provocari ale societatii cunoasterii ) - Year 2019, Vol 11, Issue 13
Abstract
This research shows us risks in acquiring assets on capital markets. Behavior of investors uses limited rational theory, adaptive theory of expectations and mind theory. Simon asserted in 1955 that “a normal human being is not entirely rational in making his decisions because of various heuristics and behavioral prejudices.” The hypothesis of adaptive expectations asserts that “adaptive rationality of human preferences and expectations, given that individual decisions are prefered over time, incomplete information, and different learning environments” (Brocas and Carrillo, 2000; Hey, 1994). Compared to EU firms investing in the financial market, Romanian firms invest less because of poor asset quality, labor market uncertainty and inadequate transport infrastructure, according to the EIB survey of December 4th, 2018.
Authors and Affiliations
Valentin Gabriel CRISTEA
Keywords
Related Articles
- EP ID EP591013
- DOI -
- Views 156
- Downloads 0
AN OVERVIEW ON THE TRANSLATIVE VERSUS THE CONSTITUTIVE EFFECT OF THE INHERITANCE PARTITION IN ROMANIA
Nowadays, the article 995 of the Romanian Code of Civil Procedure regulates the so-called constitutive effect of the partition decision. Although the 2004 draft of the new Civil code stipulated a retroactive (declarative...
COMPENSATORY ACTION - A NEW LEGISLATIVE ACTION IMPOSED ON NATIONAL AUTHORITIES AS CONSEQUENCE OF RECENT CASE-LAW OF THE EUROPEAN COURT OF HUMAN RIGHTS
Subsequent to pronouncement by the European Court of Human Rights of the semi-pilot judgement in case Iacov Stanciu v. Romania and the pilot judgement in case Rezmiveş and Others v. Romania - where the Court found struct...
MOTIVATION OF ADMINISTRATIVE ACTS – GUARANTEE OF GOOD ADMINISTRATION
The present article deals with the aspects of motivating administrative acts, both doctrinaire and practical, of jurisprudence. The duty of the administration to motivate its decisions is submitted in the Charter of Fund...
CONFLICT OF INTERESTS’ REGULATION ON ELECTED OFFICIALS
This article sheds an overview of the different perspectives that judicial courts grant regarding the same concept, namely the conflict of interest in relation to the elected officials. We will also analyze the ambiguous...
HUMAN RESOURCES IN THE CURRENT ECONOMIC AND SOCIAL BACKGROUND
The increasing demographic decline in the recent years creates major malfunctions on the Romania and the European Union labor markets. The social and economic consequences of the demographic phenomenon are increasingly r...