Speed of Adjustment Scurities Prices, A Method for Evaluating of Investors Overreaction & Underreaction and Financial Markets Efficiently: Approches, Models and Results

Document Type : Original Article

Authors
Hashem Nikoumaram 1
Ali Saeedi 2
Fereydoun Rahnamay Roodposhti 3
Mahdi Madanchi Zaj 4
1 Prof.,Management and Economic Faculty, Islamic Azad University, Science and Research Branch
2 Assistant Prof., Management and Social Science Faculty, Islamic Azad University, North Tehran Branch
3 Proffesor in Management and Economic Faculty, Islamic Azad University, Science and Research Branch
4 Ph.D. Student in Financial Management, Islamic Azad University, Science and Research Branch
Abstract
Overreaction and underreaction phenomena in financial markets reflect it’s inefficiently. Different methods are suggested for evaluation of overreaction and under reaction in researches. One of these methods is measurement of the securities price adjustment speed. Speed of price adjustment securities is time duration that information absorbed in stock prices and reach stock price to their intrinsic values. At this article, is classified several researches to three approaches and described different models and then presented their results. Also the determinants for delayed Stock price adjustment is described and finally is explored Iran capital market specifications and propose some practical suggestions for increasing the stocks adjustment speed improving capital market efficiently.
Keywords
Overr reaction
Under Reaction
Speed of Adjustment Price
Market Efficiently