Rational vs. irational in investors’ behavior in response to financial reporting – empirical evidence on Bucharest stock exchange

Ioan Ovidiu Spătăcean () and Cornel Ștefan Nicola ()
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Ioan Ovidiu Spătăcean: Faculty of Economics and Law, Finance and Accounting Department, University of Medicine, Pharmacy, Sciences and Technology from Târgu Mureș, Gh. Marinescu street, no. 38, Tîrgu – Mureș, 540139, România
Cornel Ștefan Nicola: -

Acta Marisiensis. Series Oeconomica, 2018, vol. 1, 58-72

Abstract: This study is addressing the issue of investors’ behavior as a reaction to financial reporting, measured by the volatility of stock prices. The main research objective relates to assessing the rationale of investors’ behavior when good or bad news are communicated via preliminary and audited financial statements. The research was conducted on a sample of 24 BSE listed companies, from the BET XT index, over the reporting periods between 2012 and 2017. Based on our research we concluded that the Romanian capital market is close to a semi-efficient type of market, since only a half of the observations revealed rationality in investors’ decision making.

Keywords: financial reporting; rational investment decisions; stock price volatility; financial statements; market efficiency. (search for similar items in EconPapers)
JEL-codes: G14 G41 M41 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pmu:oecono:v:1:y:2018:p:58-72

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