Modeling nonlinear in Bowman’s paradox: the case of Pakistan

Prospect theory frequently explains the empirical results of Bowman's paradox (negative relationship between risk and return). However, the empirical econometric model of these researches is misspecified. This study used a data-driven approach to improve the econometric model. Empirical results...

Descripción completa

Detalles Bibliográficos
Autores principales: Mahmood, Farrukh, Kunst, Robert M.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer Berlin Heidelberg 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9589651/
https://www.ncbi.nlm.nih.gov/pubmed/36311972
http://dx.doi.org/10.1007/s00181-022-02308-3
_version_ 1784814350872084480
author Mahmood, Farrukh
Kunst, Robert M.
author_facet Mahmood, Farrukh
Kunst, Robert M.
author_sort Mahmood, Farrukh
collection PubMed
description Prospect theory frequently explains the empirical results of Bowman's paradox (negative relationship between risk and return). However, the empirical econometric model of these researches is misspecified. This study used a data-driven approach to improve the econometric model. Empirical results based on the improved econometric model are also reinforced by data visualization to be illustrated in depth. For this purpose, we used the data of 622 listed firms on the Pakistan Stock Exchange from 2000 to 2019. Our results contradict the literature on prospect theory based on the improved econometric model.
format Online
Article
Text
id pubmed-9589651
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Springer Berlin Heidelberg
record_format MEDLINE/PubMed
spelling pubmed-95896512022-10-24 Modeling nonlinear in Bowman’s paradox: the case of Pakistan Mahmood, Farrukh Kunst, Robert M. Empir Econ Article Prospect theory frequently explains the empirical results of Bowman's paradox (negative relationship between risk and return). However, the empirical econometric model of these researches is misspecified. This study used a data-driven approach to improve the econometric model. Empirical results based on the improved econometric model are also reinforced by data visualization to be illustrated in depth. For this purpose, we used the data of 622 listed firms on the Pakistan Stock Exchange from 2000 to 2019. Our results contradict the literature on prospect theory based on the improved econometric model. Springer Berlin Heidelberg 2022-10-21 2023 /pmc/articles/PMC9589651/ /pubmed/36311972 http://dx.doi.org/10.1007/s00181-022-02308-3 Text en © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
Mahmood, Farrukh
Kunst, Robert M.
Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title_full Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title_fullStr Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title_full_unstemmed Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title_short Modeling nonlinear in Bowman’s paradox: the case of Pakistan
title_sort modeling nonlinear in bowman’s paradox: the case of pakistan
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9589651/
https://www.ncbi.nlm.nih.gov/pubmed/36311972
http://dx.doi.org/10.1007/s00181-022-02308-3
work_keys_str_mv AT mahmoodfarrukh modelingnonlinearinbowmansparadoxthecaseofpakistan
AT kunstrobertm modelingnonlinearinbowmansparadoxthecaseofpakistan

Ejemplares similares