Investor behavior and Flow-through capability in the US stock market
This paper analyzes investor behavior depending on the flow-through capability in the US stock market, because investors seek protection from inflation rate changes, and the flow-through capability (a firm?s ability to transmit inflation shocks to the prices of its products and services) is a key fa...
| Autores: | , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2016 |
| País: | España |
| Institución: | Universidad de Castilla-La Mancha |
| Repositorio: | RUIdeRA. Repositorio Institucional de la UCLM |
| OAI Identifier: | oai:ruidera.uclm.es:10578/9328 |
| Acceso en línea: | http://hdl.handle.net/10578/9328 |
| Access Level: | acceso abierto |
| Palabra clave: | Flow-through capability Inflation rate Stock return Sectoral analysis Investor behavior |
| Sumario: | This paper analyzes investor behavior depending on the flow-through capability in the US stock market, because investors seek protection from inflation rate changes, and the flow-through capability (a firm?s ability to transmit inflation shocks to the prices of its products and services) is a key factor in investment decisions. Our estimates of the flow-through capability of firms listed on the US stock exchange at the sector level are significantly different among industries, and we demonstrate a direct relationship between changes in stock prices (at the sector level) and flow-through capability. These results would be relevant because they have important implications on investor behavior. |
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