Negative Campaigning on the Polish Capital Market Cover Image

Czarny PR na polskim rynku kapitałowym
Negative Campaigning on the Polish Capital Market

Author(s): Elzbieta Kubińska
Subject(s): Financial Markets, Socio-Economic Research
Published by: Wydawnictwo Naukowe Uniwersytetu Marii Curie-Sklodowskiej
Keywords: behavioral finance; recency effect; primacy effect; contrast model of similarity; noise; information efficiency of markets; finanse behawioralne; efekt świeżości; efekt pierwszeństwa;

Summary/Abstract: Classic example of negative campaigning on the Polish capital market is a case of Broker FM. The mechanisms of negative campaigning are similar, they share a similar reaction of investors to the negative information. An important element of the campaign is to act recency effect, the contrast model of similarity. Another characteristic of negative campaigning is that asset prices react more intensely to negative information than positive one and that investors react too strongly to unconfirmed messages, and exhibit conservatism in relation to precise and clear signals. In the case of initial public offering of Broker FM shares, an important element is the fact that the primary market is more risky than the secondary market.

  • Issue Year: XLIX/2015
  • Issue No: 4
  • Page Range: 301-310
  • Page Count: 10
  • Language: Polish