Rational Investors’ Reaction to Uncertainty

Evidence from the World’s Major Markets

Authors

  • Richard A. Ajayi Wayne State University
  • Seyed Mehdian Ohio State University

DOI:

https://doi.org/10.1016/1057-0810(95)90032-2

Abstract

This paper examines the reaction of rational investors to unexpected information across the world’s major markets. The empirical results provide considerable support for the Uncertain Information Hypothesis and limited support for the Overreaction Hypothesis. In addition, it is found that investors are compensated for post-event increased volatility across these major markets. Journal ofBusiness Finance & Accounring, June 1994,21(4): 533- 545. (Reprinted with permission of Blackwell Publishers.)

Published

1995-06-30

How to Cite

Ajayi, R. A., & Mehdian , S. (1995). Rational Investors’ Reaction to Uncertainty: Evidence from the World’s Major Markets. Financial Services Review: The Journal of Individual Financial Management, 4(1), 65–66. https://doi.org/10.1016/1057-0810(95)90032-2

Issue

Vol. 4 No. 1 (1995): Financial Services Review

Section

Abstracts of Articles on Individual Financial Management

License

Copyright (c) 1995 JAI Press Inc.

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