ABFER 12th ANNUAL CONFERENCE
The conference was held on 19-22 May 2025 in Singapore
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12th ASIAN MONETARY POLICY FORUM
The 12th AMPF commenced on 22 May 2025 with a joint dinner with ABFER, followed by the forum on 23 May 2025 at Conrad Singapore Orchard
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CALL FOR POSTERS 2025
The Call for Posters is now closed. Selected papers will be informed by end of February. The poster sessions will be held on 20 and 21 May 2025 at the ABFER 12th Annual Conference.
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CAPITAL MARKET DEVELOPMENT: CHINA AND ASIA
Webinar series on every third Thursday of the month
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INDUSTRY OUTREACH PANEL
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  • ABFER 12th ANNUAL CONFERENCE
  • 12th ASIAN MONETARY POLICY FORUM
  • CALL FOR POSTERS 2025
  • CAPITAL MARKET DEVELOPMENT: CHINA AND ASIA
  • INDUSTRY OUTREACH PANEL

RESEARCH DIGEST

 

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SOME IMPORTANT FACTS ABOUT US

4265 SUBMITTED Papers submitted to
Annual Conference
11415 AUTHORS Representing number
of authors
684 PRESENTED Papers presented at
Annual Conferences
218 JOURNALS Papers published in
significant journals
5200 PARTICIPANTS Participants at
Annual Conferences

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

 
 
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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