IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v344y2004i1p156-161.html
   My bibliography  Save this article

The collision of masses and the way prices react to expectations

Author

Listed:
  • Chavez-Guzman, Luis

Abstract

When a body is impacted by other bodies its position is determined by the force of the impacts, likewise the price of a share is determined by expectations. This study intents to establish taxonomy of expectations based on the different types of impacts a body can receive, these can be: a blow without penetration, a blow that penetrates and stays in the body, a blow that goes through the body without affecting the body mass, and lastly, a blow that reduces but does not penetrate the body mass.

Suggested Citation

  • Chavez-Guzman, Luis, 2004. "The collision of masses and the way prices react to expectations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 156-161.
    • Handle: RePEc:eee:phsmap:v:344:y:2004:i:1:p:156-161
    DOI: 10.1016/j.physa.2004.06.108
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437104009264
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2004.06.108?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Grinblatt, Mark S. & Masulis, Ronald W. & Titman, Sheridan, 1984. "The valuation effects of stock splits and stock dividends," Journal of Financial Economics, Elsevier, vol. 13(4), pages 461-490, December.
    2. Keown, Arthur J & Pinkerton, John M, 1981. "Merger Announcements and Insider Trading Activity: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 36(4), pages 855-869, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qin, Wei & Liang, Quanxi & Jiao, Yan & Lu, Meiting & Shan, Yaowen, 2022. "Social trust and dividend payouts: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    2. Koski, Jennifer Lynch, 1998. "Measurement Effects and the Variance of Returns after Stock Splits and Stock Dividends," Review of Financial Studies, Society for Financial Studies, vol. 11(1), pages 143-162.
    3. Baruch, Shmuel & Panayides, Marios & Venkataraman, Kumar, 2017. "Informed trading and price discovery before corporate events," Journal of Financial Economics, Elsevier, vol. 125(3), pages 561-588.
    4. Arturo Bris, 2005. "Do Insider Trading Laws Work?," European Financial Management, European Financial Management Association, vol. 11(3), pages 267-312, June.
    5. Sheridan Titman & Chishen Wei. Wei & Bin Zhao, 2021. "Corporate Actions and the Manipulation of Retail Investors in China: An Analysis of Stock Splits," NBER Working Papers 29212, National Bureau of Economic Research, Inc.
    6. Estrada, Javier & Peña, Juan Ignacio, 1995. "Empirical evidence on the impact of European insider trading regulations," DEE - Working Papers. Business Economics. WB 7068, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    7. Dhatt, Manjeet S. & Kim, Yong H. & Mukherji, Sandip, 1997. "The role of stock dividends in Korea," Global Finance Journal, Elsevier, vol. 8(2), pages 295-308.
    8. Jan Zabojnik, 2014. "Stock-based Compensation Plans And Employee Incentives," Working Paper 1325, Economics Department, Queen's University.
    9. Louis T. W. Cheng & Hung‐Gay Fung & Tak Yan Leung, 2009. "Dividend preference of tradable‐share and non‐tradable‐share holders in Mainland China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 49(2), pages 291-316, June.
    10. Linda S. Klein & David R. Peterson, 1988. "Investor Expectations Of Volatility Increases Around Large Stock Splits As Implied In Call Option Premia," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 11(1), pages 71-80, March.
    11. Marshall A. Geiger & Bret Johnson & Keith L. Jones & Abdullah Kumas, 2022. "Information Leakage Around SEC Comment Letters," Management Science, INFORMS, vol. 68(11), pages 8449-8463, November.
    12. Tomasz Potocki & Tomasz Swist, 2012. "Empirical Test of the Strong Form Efficiency of the Warsaw Stock Exchange: The Analysis of WIG 20 Index Shares," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(2), pages 155-172.
    13. David R. Peterson & Pamela P. Peterson, 1992. "A Further Understanding Of Stock Distributions: The Case Of Reverse Stock Splits," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 15(3), pages 189-205, September.
    14. Beng Soon Chong & Zhenbin Liu, 2016. "CAR associated with SEO share lockups: Real or illusionary?," Review of Quantitative Finance and Accounting, Springer, vol. 47(3), pages 513-541, October.
    15. Roger Huang & H. Weingartner, 2000. "Do Market Makers Suffer from Splitting Headaches?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(2), pages 105-126, August.
    16. Jeff Madura & Thanh Ngo & Jurica Susnjara, 2014. "Information leakages and the costs of merging in Europe," Applied Financial Economics, Taylor & Francis Journals, vol. 24(8), pages 515-532, April.
    17. Augustin, Patrick & Brenner, Menachem & Grass, Gunnar & Subrahmanyam, Marti G., 2016. "How do insiders trade?," CFS Working Paper Series 541, Center for Financial Studies (CFS).
    18. Hayashi, Fumio & Jagannathan, Ravi, 1990. "Ex-day behavior of japanese stock prices: New insights from new methodology," Journal of the Japanese and International Economies, Elsevier, vol. 4(4), pages 401-427, December.
    19. Szymon Okoń, 2012. "Investor Reaction to Mandatory Offers on the Warsaw Stock Exchange," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 6(2), June.
    20. Nihat Gumus & Ayse Caglayan Gumus, 2021. "Do stock splits matter for returns, volatility, and liquidity? New Evidence from Borsa Istanbul," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 467-478, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:344:y:2004:i:1:p:156-161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.