Can mutual fund managers pick stocks? evidence from the trades prior to earnings announcements / Malcolm Baker ... [et al.].

Other author Baker, Malcolm (Malcolm P.)
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
Subjects

SeriesNBER working paper series ; working paper 10685
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 10685. UNAUTHORIZED
Summary "We test whether fund managers have stock-picking skill by comparing their holdings and trades prior to earnings announcements with the returns realized at those events. This approach largely avoids the joint-hypothesis problem with long-horizon studies of fund performance. Consistent with skilled trading, we find that, on average, stocks that funds buy earn significantly higher returns at subsequent earnings announcements than stocks that they sell. Funds display persistence in our event return-based metrics, and those that do well tend to have a growth objective, large size, high turnover, and use incentive fees to motivate managers"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 1/10/2005.
Bibliography noteIncludes bibliographical references.
Access restrictionAvailable only to authorized users.
Other formsAlso available in print.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005615282

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