公司理财罗斯英文原书九版十四.ppt

Crashes On October 19, 1987, the stock market dropped between 20 and 25 percent on a Monday following a weekend during which little surprising news was released. A drop of this magnitude for no apparent reason is inconsistent with market efficiency. Bubbles Consider the tech stock bubble of the late 1990s. Empirical Challenges 14.7 Reviewing the Differences Financial Economists have sorted themselves into three camps: Market efficiency Behavioral finance Those that admit that they do not know This is perhaps the most contentious area in the field. 14.8 Implications for Corporate Finance If information is reflected in security prices quickly, investors should only expect to obtain a normal rate of return. Awareness of information when it is released does an investor little good. The price adjusts before the investor has time to act on it. Firms should expect to receive the fair value for securities that they sell. Fair means that the price they receive for the securities they issue is the present value. Thus, valuable financing opportunities that arise from fooling investors are unavailable in efficient markets. Implications for Corporate Finance The EMH has three implications for corporate finance: The price of a company’s stock cannot be affected by a change in accounting. Financial managers cannot “time” issues of stocks and bonds using publicly available information. A firm can sell as many shares of stocks or bonds as it desires without depressing prices. There is conflicting empirical evidence on all three points. Why Doesn’t Everybody Believe? There are optical illusions, mirages, and apparent patterns in charts of stock market returns. The truth is less interesting. There is some evidence against market efficiency: Seasonality Small versus large stocks Value versus growth stocks The tests of market efficiency are weak. Quick Quiz Define capital market efficiency. What are the three forms of efficiency? What does the evidence say regarding the efficiency of c