The Misinformation Effect In Financial Markets – An Emerging Issue In Behavioural Finance
AbstractThe following paper is a theoretical introduction of the misinformation effect to behavioural finance. The misinformation effect causes a memory report regarding an event or particular knowledge to become contaminated with misleading information from another source. The paper aims to describe possible impact of the aforementioned phenomenon on the interpretation of stock market data, as well as the consequences of misinformation on investment-related decisions and the effective market hypothesis.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Information Technology and Management, Institute of Financial Research and Analysis in its journal e-Finanse.
Volume (Year): 8 (2012)
Issue (Month): 3 (October)
behavioural finance; stock market psychology; misinformation effect;
Find related papers by JEL classification:
- A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
- G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nicholas Barberis & Andrei Shleifer & Robert W. Vishny, 1997.
"A Model of Investor Sentiment,"
NBER Working Papers
5926, National Bureau of Economic Research, Inc.
- Sheila C. Dow, 2011. "Cognition, market sentiment and financial instability," Cambridge Journal of Economics, Oxford University Press, vol. 35(2), pages 233-249.
- Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
- De Bondt, Werner F M & Thaler, Richard, 1985. " Does the Stock Market Overreact?," Journal of Finance, American Finance Association, vol. 40(3), pages 793-805, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pawel Bochenek) The email address of this maintainer does not seem to be valid anymore. Please ask Pawel Bochenek to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.