This paper presents supporting evidence for the explanation of the excess returns. The change in shares outstanding is positively correlated with proxies for the deviation of current stock price from fundamental value; the excess returns following the change in shares remain significant after controlling for these proxies; and the changes in shares that can be explained by the proxies predict stock returns more powerfully than changes in shares explained by other reasons.
Did you find this white paper useful?
11 out of 17 users found this white paper useful
Related white papers
The State of the Art in Finance
Benchmarking is an important tool that finance organizations use to stay competitive. It allows them to determine the value of adopting best practices and changing business processes. To assess the...
White Paper Spotlight: "IT Outsourcing Essentials" Research Series from IT Consulting Int'l
Inside Volume I - "Collaboration Fundamentals: Preventing Client/Vendor Process Mismatch"
* A Process Compatibility Matrix Diagram
* Real Life Process Mismatch Examples
* Visual Aid to Decision Framework
Improving Profitability
This webcast talks about the current condition of different sectors of the insurance industry. What are the biggest external problems faced by different sectors of the insurance industry. Which areas...
Rewiring Hong Kong
Authorities have never been shy about protecting Hong Kong's status as one of the world's most important financial services centers. The biggest threat, however, comes from the Internet, online trading...
The Role of Chartists and Fundamentalists in Currency Markets: the Experience of Australia, Canada and New Zealand
In an ideal world, monetary authorities would be able to distinguish between exchange rate movements caused by changing economic fundamentals and those driven solely by speculative whim. In cases where...
FDI Confidence Audit: South Africa
An outgrowth of A.T. Kearney's Foreign Direct Investment Confidence Index, the Foreign Direct Investment Confidence Audit: South Africa is the first in a series of assessments aimed at examining country-specific...
FDI Confidence Index
Against a backdrop of sharply increased confidence in the global investment environment, Europe has displaced Latin America as the second most-preferred regional destination for near-term foreign direct investment (FDI), after...
