International Journal of Nonlinear Analysis and Applications

Presenting the model of investment anomalies’ measurement based on management efficiency

Articles in Press

Document Type : Research Paper

Authors

1 Department of Finance, Faculty of Management and Economy, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Department of Management and Economy, Payame Noor University, Tehran, Iran

10.22075/ijnaa.2024.33283.4953

Abstract

This article aims to explain how determining a company’s efficiency may explain investment anomalies. Investment anomalies point to a negative relation between company growth, adjusted rate of return, and future risk. When companies grow with plenty of investments, the market assumes this growth is positive news, but if the companies do not have the required skills for financing, the prices shall be lowered. The findings show that NSI, dAA, and IA anomalies are concentrated in companies with low returns. Furthermore, there is strong evidence that there is a strong relation between Manager-based efficiency and NSI anomaly and there is limited evidence that shows NOA efficiency plays a role in NSI, IA and NOA anomalies.

Keywords

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International Journal of Nonlinear Analysis and Applications

Articles in Press, Corrected Proof
Available Online from 09 December 2024
  • Receive Date: 13 January 2024
  • Accept Date: 11 March 2024