Overview
- Reviews the efficient markets hypothesis from a behavioural finance perspective
- Provides econometric evidence for the stock market of the five largest economies in the Euro area
- Examines the equity premium exploiting variation in stock market returns in both time series and cross-section dimension
Part of the book series: Palgrave Macmillan Studies in Banking and Financial Institutions (SBFI)
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About this book
This book reviews the efficient markets hypothesis from a behavioural finance perspective looking at the stock markets of the five largest Euro economies. It covers some key areas in finance, including efficient markets, equity premium, dividend ratio model, yield curve and term structure, all of which are concepts used to analyse pricing and other behaviour in financial markets. The book studies the term structure of interest rates describing formalizations for zero-coupon and coupon bonds and evaluates results regarding static spot rate and dynamic forward rate regressions for the Euro area. Additionally, it examines the equity premium exploiting variation in stock market returns in both time series and cross-section dimensions, and will be of interest to academics, researchers, and students of financial economics, financial markets, and behavioural finance.
Keywords
- equity premium
- random walk hypothesis
- rational speculative bubble
- volatility
- expectations hypothesis
- term structure of interest rates
- efficient markets hypothesis
- stochastic discount factor
- forward rate
- coupon bond
- zero-coupon bond
- expectation
- cognitive biases
- spot rate
- yield
- return predictability
- incomplete markets
- asset pricing
- fixed income securities
- complete markets
Table of contents (10 chapters)
Authors and Affiliations
About the author
Gian Maria Tomat is senior advisor at the Bank of Italy and provides policy and strategic advice to the Governing Board, the Board of Directors and the local administrative Directorates. He actively participates in the activities of national and international central banking working groups and has research interests in the fields of monetary and exchange rate policy, financial and real estate markets and interest rates. He has authored several articles in the areas of macroeconomics and finance and presented his work on a regular basis in workshops and conferences organized by academic institutions and international organizations. He earned a PhD in Political Economy at the University of Bologna, Italy.
Bibliographic Information
Book Title: Financial Markets Efficiency and Economic Behaviour
Book Subtitle: Evaluating Euro Area Economies
Authors: Gian Maria Tomat
Series Title: Palgrave Macmillan Studies in Banking and Financial Institutions
DOI: https://doi.org/10.1007/978-3-031-36836-3
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023
Hardcover ISBN: 978-3-031-36835-6Published: 30 August 2023
Softcover ISBN: 978-3-031-36838-7Due: 30 September 2023
eBook ISBN: 978-3-031-36836-3Published: 29 August 2023
Series ISSN: 2523-336X
Series E-ISSN: 2523-3378
Edition Number: 1
Number of Pages: XXI, 156
Number of Illustrations: 1 b/w illustrations, 8 illustrations in colour
Topics: Macroeconomics/Monetary Economics//Financial Economics, Capital Markets, Behavioral Finance