No abstract

No abstract

Deviant behavior, Prospect theory,

This study investigates the mispricing of Royal Dutch and Shell Transport stocks documented in the literature. It is found that the actual market co-movement of the two companies' stocks has gradually become asymptotic to its theoretical counterpart subsequent to the publication of empirical studies that investigated the mispricing phenomenon. These findings imply that market participants incorporate published academic studies into their learning curve. However, it took nine years to rectify the mispricing problem, a fact that seems inconsistent with market efficiency, where information should be reflected immediately in stock prices.

<p class="ber"><span lang="EN-GB">This study investigates the relationship between daily US presidential election poll results and stock returns. The sample consists of the daily presidential election polls published in the New-York Times for the period between May 31 and November 5, 2012. They include the percentage of support for the Democratic candidate, Barack Obama, and the Republican candidate, Mitt Romney. The findings indicate that stock returns are positively related to the poll results that support the candidate favored to win the election.</span></p>