Investor Behavior and Flow-through Capability in the US Stock Market

This paper analyzes investor behavior depending on the flow-through capability (FTC) in the US stock market, because investors seek protection from inflation rate changes, and the FTC (a firm's ability to transmit inflation shocks to the prices of its products and services) is a key factor in i...

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Detalles Bibliográficos
Autores principales: Cano, Carlos, Jareño, Francisco, Tolentino, Marta
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2016
Materias:
Psychology
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4860425/
https://www.ncbi.nlm.nih.gov/pubmed/27242585
http://dx.doi.org/10.3389/fpsyg.2016.00668
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author Cano, Carlos
Jareño, Francisco
Tolentino, Marta
author_facet Cano, Carlos
Jareño, Francisco
Tolentino, Marta
author_sort Cano, Carlos
collection PubMed
description This paper analyzes investor behavior depending on the flow-through capability (FTC) in the US stock market, because investors seek protection from inflation rate changes, and the FTC (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 FTC 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 FTC. These results would be relevant because they have important implications on investor behavior.
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spelling pubmed-48604252016-05-30 Investor Behavior and Flow-through Capability in the US Stock Market Cano, Carlos Jareño, Francisco Tolentino, Marta Front Psychol Psychology This paper analyzes investor behavior depending on the flow-through capability (FTC) in the US stock market, because investors seek protection from inflation rate changes, and the FTC (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 FTC 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 FTC. These results would be relevant because they have important implications on investor behavior. Frontiers Media S.A. 2016-05-09 /pmc/articles/PMC4860425/ /pubmed/27242585 http://dx.doi.org/10.3389/fpsyg.2016.00668 Text en Copyright © 2016 Cano, Jareño and Tolentino. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Cano, Carlos
Jareño, Francisco
Tolentino, Marta
Investor Behavior and Flow-through Capability in the US Stock Market
title Investor Behavior and Flow-through Capability in the US Stock Market
title_full Investor Behavior and Flow-through Capability in the US Stock Market
title_fullStr Investor Behavior and Flow-through Capability in the US Stock Market
title_full_unstemmed Investor Behavior and Flow-through Capability in the US Stock Market
title_short Investor Behavior and Flow-through Capability in the US Stock Market
title_sort investor behavior and flow-through capability in the us stock market
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4860425/
https://www.ncbi.nlm.nih.gov/pubmed/27242585
http://dx.doi.org/10.3389/fpsyg.2016.00668
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