Efekty cenowe na polskim rynku kapitałowym
Price effects on Polish capital market

Author(s): Magdalena Jasiniak
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: Wydawnictwo Uniwersytetu Łódzkiego
Keywords: capital market; price effects; low price anomaly; behavioural finance; capital market anomalies; determinants of investors’ decisions
Summary/Abstract: The aim of the study is to assess the perception of stocks’ investment attractiveness through the prism of their market prices from the investors’ perspective and the verification of pricing effects on the Polish capital market. On the Polish capital market, research on price effects are uncommon, although the area of ​​behavioral finance and market anomalies seems to be quite widely explored. This study complements the research gap in this area. The results of research conducted on foreign capital markets describe the occurrence of various price phenomena, which indicates the existence of a relationship between the stocks market price and investors’ investment decisions which in consequence may translate into the formation of the rate of return of these stocks. In the case of the Polish capital market, it also stated that there is a relationship between the stock price and the return rates generated. It also indicates that the calendar anomalies known in the literature occur with various intensification, depending on the price range of stocks. In addition, it was noted that investors' reactions on split and resplit operations are different depending on the stock price before the event and the coefficient of split or resplit. Research carried out among individual investors has shown that the stock price is the most important factor in the decision-making process and according to respondents, it is about their investment attractiveness. In investors' opinion, the chances of achieving above-average returns are growing along with the stock price.

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