search query: @indexterm Financial theory / total: 142
reference: 4 / 142
| Author: | Neumann, R. Voetmann, T. |
| Title: | Demand curves for European stocks slope down too: evidence from float-capitalization index weights in Dow Jones STOXX 50 |
| Journal: | European Finance Review
2003 : VOL. 7:3, p. 437-457 |
| Index terms: | Financial theory Stock exchanges Share prices Price indices Europe |
| Language: | eng |
| Abstract: | The 2000 implementation of float-capitalization index weights in the Dow Jones STOXXsm indices changes the demand for large European stocks. In this paper, the authors test for imperfect-substitution and price-pressure effects due to the change in the demand for stocks. Contrary to the fundamentals assumption of perfectly elastic demand curves in asset pricing theories, the findings suggest that a price pressure effect is not a plausible explanation. |
SCIMA