Separating Winners from Losers
High book-to-market (B-to-M) firms tend to be in poor financial health, as reflected by their low stock prices and poor earnings performance. Yet research consistently shows that a portfolio of these “value” firms outperforms both the overall market and portfolios comprised of low B-to-M “glamour” firms.
The reason for this is because a small number of high B-to-M firms are strong enough to raise the … [ Read more ]
Content: Article | Author: Joseph D. Piotroski | Source: Capital Ideas | Subjects: Accounting, Finance | Industry: Investing
Understanding Investor Sentiment: You Can Profit From Investor Mistakes
What happens when important news hits the financial markets? Suppose a company reports earnings much higher than expected or announces a big acquisition. Traders and investors rush to digest the information and push stock prices to a level they think is consistent with what they have heard. But do they get it right? Do they react properly to the news they receive? Recent evidence suggests … [ Read more ]
Content: Article | Authors: Nicholas Barberis, Robert W. Vishny | Source: Capital Ideas | Subject: Finance | Industry: Investing
Beyond the Hype: Making B2B E-Commerce Profitable
After researching firms that have transferred their B2B transactions from a physical marketplace to an Internet-based one, Garicano and Kaplan devised a framework for analyzing existing and potential B2B e-commerce strategies. This method works for B2B startups as well as established companies taking their B2B transactions online, and it helps businesspeople judge whether a strategy has measurable benefits for both the company and its customers-important … [ Read more ]
Content: Article | Authors: Luis Garicano, Steven N. Kaplan | Source: Capital Ideas | Subject: IT / Technology / E-Business
The Razor’s Edge
Just 20 years ago, China was among the world’s poorest countries, with 80 percent of the population living on incomes of less than $1 a day. Since China launched its economic reform program in 1978, its transition from a centrally planned to a market-based economy has fueled one of the world’s highest growth rates. Most often, a movement to market is about a devolution of … [ Read more ]
Content: Article | Author: Alwyn M. Young | Source: Capital Ideas | Subject: International – China
The Socially Conscious Corporation
U of Chicago paper asks and answers the question: Can companies do well by doing good?
Content: Article | Author: Satya Menon | Source: Capital Ideas | Subject: Social Responsibility (ESG)