ABFER 11th ANNUAL CONFERENCE
The ABFER 11th Annual Conference will be held on 20-23 May 2024 at the Pan Pacific Singapore
FIND OUT MORE
11th ASIAN MONETARY POLICY FORUM
The 11th Asian Monetary Policy Forum (AMPF) will commence on 23 May 2024 at the Pan Pacific Singapore with a joint dinner with ABFER, followed by the forum on 24 May 2024 at Conrad Centennial Singapore
FIND OUT MORE
CAPITAL MARKET DEVELOPMENT: CHINA AND ASIA
Webinar series on every second Thursday of the month
FIND OUT MORE
INNOVATION, PRODUCTIVITY GROWTH, AND CHALLENGES IN THE DIGITAL ERA: ASIA AND BEYOND
Webinar series on every first Wednesday of the month
Find out more
INDUSTRY OUTREACH PANEL
FIND OUT MORE
  •  
  •  
  •  
  •  
  •  
  • ABFER 11th ANNUAL CONFERENCE
  • 11th ASIAN MONETARY POLICY FORUM
  • CAPITAL MARKET DEVELOPMENT: CHINA AND ASIA
  • INNOVATION, PRODUCTIVITY GROWTH, AND CHALLENGES IN THE DIGITAL ERA: ASIA AND BEYOND
  • INDUSTRY OUTREACH PANEL

WORKING PAPERS

 

Webinar Series

|

Innovation, Productivity and Challenges in the Digital Era: Asia and Beyond

|

Apr 2023

Webinar Series

|

Capital Market Development: China and Asia

|

Dec 2023

Webinar Series

|

Capital Market Development: China and Asia

|

Nov 2023

SOME IMPORTANT FACTS ABOUT US

2800 SUBMITTED Papers submitted to
Annual Conference
7366 AUTHORS Representing number
of authors
553 PRESENTED Papers presented at
Annual Conferences
186 JOURNALS Papers published in
significant journals
4200 PARTICIPANTS Participants at
Annual Conferences

Sexy or Safe: Why do Predicted Stock Issuers Earn Low Returns?

 
 
keynote-banner
 

Predicted stock issuers (PSIs) are firms with expected “high-investment and low-profit” (HILP) profiles that earn unusually low returns. We carefully document important features of PSI firms to provide new insights on the economic mechanism behind the HILP anomaly. Our results show top-PSI firms are cash-strapped and dependent on external financing, have lottery-like payoffs, high volatility, high Beta, and high shorting costs. Over the next two years, top-PSIs earn return-on-assets of -30% per year, report disappointing earnings, and experience strongly-negative analyst forecast revisions. They earn especially low returns in down markets and are nine times more likely to delist for performance reasons. We conclude that HILP firms earn low returns not because they are safer, but because they are more salient (i.e. sexier) to investors and are thus overpriced.

25
May
2017
Thursday
 Venue: Jurong Ballroom

Speaker