Standard equity valuation approaches (i.e., DDM, RIM, and DCF model) are derived under the assumption of ideal conditions, such as infinite payoffs and clean surplus accounting. Because these conditions are hardly ever met, we extend the standard approaches, based on the fundamental principle of...

Technical trading strategies assume that past changes in prices help predict future changes. This makes sense if the past price trend reflects fundamental information that has not yet been fully incorporated in the current price. However, if the past price trend only reflects temporary pricing...

Self‐discrepancy between the actual and ought self‐concept is harmful to individuals, causing them to experience psychological discomfort. Previous consumer research has repeatedly demonstrated that self‐discrepancies motivate consumers to cope with their negative psychological...

This article introduces the concept of a stock value gap — the shortfall of a firm's actual market value from its optimal market value, as measured by a best-performing benchmark. Using a large-scale, real-world database, the authors test the effects of both customer satisfaction and customer...