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Contribution Details
| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | Non-proportional Thinking Behavior in the European Stock Market |
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| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Date | 2023 |
| Abstract Text | This thesis investigates the Non-proportional thinking (NPT) predictions regarding investors’ behavior in the European stock market. NPT predicts that lower-priced stocks experience more extreme abnormal returns compared to higher-priced stocks due to investors thinking in nominal rather than percentage terms when evaluating the impact of new information. Evidence of a negative relationship between the nominal share price level and abnormal returns around earnings announcement dates is found, however, the extent of engagement in NPT behaviors is estimated to be close to zero for the period and sample under investigation. |
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