Instead, I'd argue they were unequivocally justified in their actions and that it was - if anything - an underreaction
to the problems we face.
Short-term overreaction, underreaction
and efficient reaction: evidence from the London Stock Exchange.
THE RELATIONSHIP BETWEEN REACTIVITY AND ORGANIZATIONAL RISK IN LOW AND HIGH EO LEADERS WITH ZONES OF OVERREACTION AND UNDERREACTION
Teoh, 2009, "Driven to Distraction: Extraneous Events and Underreaction
to Earnings News," Journal of Finance 64, 2289-2325.
We extend the literature on investor inattention by introducing a new type of investor distraction, which we call conflicting-mood investor distraction, and by examining whether it can cause underreaction
to earnings news that conflicts with investors' mood states.
"Investor Reaction to Corporate Event Announcements: Underreaction
or Overreaction?" Journal of Business, vol.
However, PANI gave an underreaction
against the acetone gas, while a clear recovery process was not observed.
Similarly, the largest contributing factor for momentum profits is the underreaction
effect, whereas cross-sectional risk is the second largest factor that positively affects momentum profits.
So there is a neglect of the "tail" bad state initially and excessive credit extension, an initial underreaction
to bad news, and eventually, overreaction.
When, and to what extent, do we tend to commit the general errors of overreaction and underreaction
to new information?
to open market share repurchases.