<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The investment policy is an important vehicle of growth for a company. Therefore, it should be one of the most important signals for investors on the capital market. We use the statistical analysis of the investors’ reactions to different patterns of investment policy to highlight their preference for an active investment policy and the changes induced by the financial crisis. By a comparative analysis of investors’ preferences with the information on the accounting-based performance recorded simultaneously and in the future economic exercise, we focus on the extent and limits of the investors’ rationality around the financial crisis.</p></abstract>

The investment policy is an important vehicle of growth for a company. Therefore, it should be one of the most important signals for investors on the capital market. We use the statistical analysis of the investors’ reactions to different patterns of investment policy to highlight their preference for an active investment policy and the changes induced by the financial crisis. By a comparative analysis of investors’ preferences with the information on the accounting-based performance recorded simultaneously and in the future economic exercise, we focus on the extent and limits of the investors’ rationality around the financial crisis.

Investors’ rationality. An analysis of the investment policy implications on shares valuation

Department Of Finance And CEFIMO, Faculty Of Finance And Banking

The Bucharest University Of Economic Studies

UNESCO Department For Business Administration, Faculty Of Business Administration In Foreign Languages

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The investment policy is an important vehicle of growth for a company. Therefore, it should be one of the most important signals for investors on the capital...

Investors’ rationality. An analysis of the investment policy implications on shares valuation

Published Online: Nov 29, 2019

Page range: 578 - 588

DOI: https://doi.org/10.2478/picbe-2019-0051

Keywords
Investors’ Rationality, Animal Spirits, Investment Policy

© 2019 Andreea Curmei-Semenescu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Investors’ rationality. An analysis of the investment policy implications on shares valuation

Published Online: Nov 29, 2019

Page range: 578 - 588

DOI: https://doi.org/10.2478/picbe-2019-0051

KeywordsInvestors’ Rationality, Animal Spirits, Investment Policy

© 2019 Andreea Curmei-Semenescu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Investors’ Rationality, Animal Spirits, Investment Policy