Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/72494
Title: Do investors over-anticipate? : Evidence from their reactions to gain and loss contingencies
Authors: Xu, Tu
Keywords: DRNTU::Business::Finance::Investments
Issue Date: 2017
Source: Xu, T. (2017). Do investors over-anticipate? : Evidence from their reactions to gain and loss contingencies. Doctoral thesis, Nanyang Technological University, Singapore.
Abstract: Firms are required to communicate uncertainties about their future earnings and cash flows to investors. In this thesis, I conducted a between-participants experiment to examine how investors anticipate firms’ uncertain future outcomes in response to contingency disclosures. I find that, inconsistent with expected utility theory but consistent with findings from psychology, investors raise a firm’s valuation in response to a gain contingency as if the gain contingency has realized its best possible outcome. At the same time, they lower a firm’s valuation more for a loss contingency than for a realized loss that is essentially the worst possible outcome of the corresponding loss contingency. The effect of anticipation on investors’ valuation judgments is mediated by investors’ uncertainty perceptions. My findings have implications for investors, managers, and regulators.
URI: http://hdl.handle.net/10356/72494
DOI: 10.32657/10356/72494
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Theses

Files in This Item:
File Description SizeFormat 
Xu Tu thesis final library.pdfMain article1.05 MBAdobe PDFThumbnail
View/Open

Page view(s) 50

314
Updated on May 9, 2021

Download(s) 50

45
Updated on May 9, 2021

Google ScholarTM

Check

Altmetric


Plumx

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.