Skip to main content

International Comparisons on Stock Market Short-termism: How Different is the UK Experience?

Buy Article:

The full text article is temporarily unavailable.

We apologise for the inconvenience. Please try again later.


Using data from five major stock markets and a vector autoregression estimation procedure underpinned by the traditional intertemporal capital asset pricing model, initial evidence suggests that the UK investing community is particularly prejudiced in terms of short-termist behaviour. The observed UK myopic outlook, however, may be more apparent than real. We hypothesize that UK investors are highly sensitive to uncertainty over future cash flows—a feature which is not being captured by traditional theoretical models. Motivated by the ‘option value’ approach, the evidence shows that uncertainty about UK economic conditions, as proxied by the spread between mortgage rates and base rates, can go some way in explaining the reported UK anomaly.

Document Type: Research Article

Affiliations: University of Aberdeen

Publication date: 2000-06-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more