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Biased Judgement on what moves Stock Prices

Results

Which questionnaire measures are grouped in financial analysts’ minds?

In order to determine which of the 56 questionnaire measures listed in Table 1 go together in participants’ minds a factor analysis was conducted. Due to the small number of respondents in relation to the number of items a correlation matrix was used for further analysis. The principal axis method of varimax normalised rotation factor analysis yielded 4 factors explaining as much as 45% of total variance. The results are presented in Table 1.

Table 1. Varimax normalised factor loadings. Negative value of a factor loading means that the item was perceived as having a reverse impact on the future stock prices in comparison to positive value items.

Prof. Piotr Zielonka

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Summary: Index