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Article Dans Une Revue Journal of Behavioral Finance Année : 2013

Does Price Influence Assessment of Fundamental Value? Experimental Evidence

Résumé

Assessing the fundamental value of a firm is a difficult task. Theoretically, the market price is exogenous and should not be used in the estimation. We performed a simple experiment to pinpoint whether price is used in fundamental value calculation. Subjects were given similar information on a firm. In the first/control situation, no price was submitted. In the second situation, the actual price was submitted to them. In the third one, a manipulated, overvalued price was provided. We find that the price provided, whatever it is, proves to have a clear impact on the subjects' estimations. This is consistent with the anchoring-and-adjustment hypothesis of fundamental assessment and has implications for a better understanding of financial bubbles.
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Dates et versions

hal-02156599 , version 1 (14-06-2019)

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Sylvain Marsat, B Williams. Does Price Influence Assessment of Fundamental Value? Experimental Evidence. Journal of Behavioral Finance, 2013, 14 (4), pp.268-275. ⟨10.1080/15427560.2013.848866⟩. ⟨hal-02156599⟩
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