Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at a long historical look at commodity price reversals.
Chart of the Day
Individuals “hire” funds based on past performance, and “fire” funds based on past performance, all to little effect.
Corporate finance
- Peer pressure drives a lot of corporate investment. (papers.ssrn.com)
- More remote boards (geographically) do a better job of oversight. (papers.ssrn.com)
Insiders
- Industry insiders do show an ability to pick industry-relevant stocks. (alphaarchitect.com)
- Most insider cases involve relatively modest sums of money. (wsj.com)
Factors
- How factor investing performs in the real world. (alphaarchitect.com)
- How diversification can help smooth out the potential underperformance of individual factor-focused strategies. (factorresearch.com)
Research
- Is the illiquidity premium a myth? Maybe its more of a complexity premium... (institutionalinvestor.com)
- A better way to measure trend signal strength. (cfapubs.org)
- Initial firm quality and growth matter a lot for later outcomes. (papers.ssrn.com)
- A roundup of recent research on 'nowcasting' the global economy. (capitalspectator.com)
