IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Valuation and Market Rationality of Internet Stock Prices

  • Eli Ofek
  • Matthew Richardson
Registered author(s):

    This paper provides an analysis of some existing as well as new evidence of the relation between market prices and fundamentals in the Internet sector over the period January 1998 to February 2000. Appealing to results across a broad class of outcomes, we demonstrate a strong, circumstantial case against market rationality. In particular, we investigate (i) the level of Internet stock prices given their underlying fundamentals, (ii) responses of stock prices to information-based events, and (iii) the volatility of Internet prices. We review several potential explanations of these phenomena, including one based on heterogeneous beliefs across investors who are subject to short sales constraints. We provide a discussion of the empirical evidence supporting this latter explanation. Copyright 2002, Oxford University Press.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

    Volume (Year): 18 (2002)
    Issue (Month): 3 ()
    Pages: 265-287

    as
    in new window

    Handle: RePEc:oup:oxford:v:18:y:2002:i:3:p:265-287
    Contact details of provider: Web page: http://oxrep.oupjournals.org/

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:18:y:2002:i:3:p:265-287. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)

    or (Christopher F. Baum)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.