Market sophistication, an analysis before COVID-19: Valuation considering the most relevant companies of the NASDAQ-100 applying PLS-SEM algorithms
Abstract
Investors can develop behaviors that may be considered irrational from the classical economics' perspective. This research aims to generate reflective behavioral constructs, which measure the economic effects of investor decisions in the stock market. The applied algorithms' fundament is Partial Least Squares (PLS) - Structural Equation Models (SEM).