growth firms by over extrapolating past growth, failing to understand the diminishing rate of return to new investment (Lakonishok, Shleifer and Vishney 1994).
Chorlton is concerned about how long what he considers a "QE-fueled misprice
of risk" will continue.
Abusive transfer pricing -- in which legally related entities misprice
goods or services -- accounts for roughly 60 percent of the continent's illicit capital flight, according to the United Nations Economic Commission for Africa.
Only time will tell if that's the case, but, as a whole, life insurance companies correctly price their products more often than they misprice
The difference between these actual rates and our predicted hurdle rates measures the extent to which investors misprice
As a result, investors misprice
the shares of intangibles-intensive enterprises and managers misprice
their cost of capital, thereby hindering their ability to invest adequately in R&D.
When an IPO quickly moves to a significantly higher price during its first day on the market, it's natural to wonder if the investment bankers--and the issuing company's officers--didn't misprice
The top banker added: "We absolutely must do much better at making credit accessible but we cannot continue to misprice
There is a substantial and growing excess of savings that is misallocated globally and giving rise to huge waves of liquidity that may misprice
risk in the short term and create credit and/or market crises.
Research on market efficiency concludes that investors misprice such fundamental historical financial information as firm size (Fama and French 1992), recent earnings surprises (Freeman and Tse 1989; Bernard and Thomas 1989), and past sales growth (Lakonishok et al.
To the extent that investors misprice accruals because they fail to understand the implications of accruals for one-year-ahead ROA, investors may similarly misprice the growth in long-term net operating assets if they fail to understand its similar implications for one-year-ahead ROA.
The second exception is that Panel E shows that the market appears to misprice
income-decreasing unexpected current accruals accompanied by abnormal insider buying.