(Update 15 July) The 2014 World Cup is now over. After Argentina’s loss in the final, its market was up 0.2%, underperforming the world index which rose by 0.6%. Germany’s index rose 1.2% – the biggest gainer among the major European indices. Excluding the anomalous Brazil defeat (which is explained below), out of the 39 …
The Effect of the 2014 World Cup on Stock Markets Read More »
(This article was originally published in CityAM. A brief, humorous, five-minute talk on the paper is here.) THE WORLD Cup, which starts today, will spark a huge range of human emotions, from the excitement of victory to the despair of defeat. The effect of football results on national mood is so strong that it can spill over …
World Cup fever: Why an England loss will wipe billions off the stock market Read More »
If a company has bad news that it wishes to hide, where will it hold its shareholder meeting? As far away as possible! That’s the hypothesis of an ingenious paper entitled “Evasive Shareholder Meetings”, by Yuanzhi Li (Temple) and David Yermack (NYU Stern) that I saw at the Rotterdam Workshop on Executive Compensation and Corporate Governance yesterday. …
Underperformance of Companies Holding Meetings in Remote Locations Read More »
The previous post concerned momentum – a strategy of buying past winners and selling past losers. It discussed how this strategy does well on average, but on rare occasions (recent market downturns and high market volatility) does very poorly. Another reason why momentum may perform poorly is because other investors are chasing the same strategy. One of …