Do Investment Newsletters Move Markets?

Brown, Scott; Cao-Alvira, José J.; Powers, Eric A.

doi:10.1111/fima.12004

Cited by 10 publications

(9 citation statements)

References 52 publications

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“…As evidence that the semi-strong form of the hypothesis may be overstated, Brown et al (2013) demonstrate the efficacy of following newsletters, in contrast to previous findings. Dougal et al (2012) show that print media by well-respected journalists can move stock prices.…”

Section: Introductioncontrasting

confidence: 80%

A Portfolio Perspective on Fortune Magazine’s “World’s Most Admired” Companies

2019

JAF

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We examine Fortune Magazine's "World's Most Admired Companies" for information content among the highest-ranked 50 companies from 2006 through 2018. We use one-year out-of-sample tests across the top three, top five, top ten, top 25, and all 50 stocks in the search for information content. We also examine an application of Modern Portfolio Theory (MPT). With the exception of the MPT application, we are unable to find convincing statistical evidence of information content, especially when considering taxes, brokerage fees, and asset-under-management charges, results that stand in contrast to those in the literature.

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Section: Introductioncontrasting

confidence: 80%

A Portfolio Perspective on Fortune Magazine’s “World’s Most Admired” Companies

2019

JAF

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“…The three portfolios are constructed following a similar methodology as in Brown et al. (). Stocks are added to each portfolio at the IPO offering price on the day of their public offering.…”

Section: Methodology and Empirical Resultsmentioning

confidence: 99%

IPO and Aftermarket Performance of Single‐Listed Chinese ADRs

Cao-Alvira

Rodríguez

2016

Financ Manag Account

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This paper analyzes the post-IPO and long-run aftermarket performances of singlelisted Chinese ADRs during the 2004-2010 period. Single-listed ADRs are traded daily in major exchanges in the United States, but their underlying shares are not traded in the issuer's home market. Our results show that over the short-run, buy-and-hold abnormal returns of single-listed Chinese ADRs following their IPO are not significantly different from the typical post-IPO performance of stocks in U.S. exchanges, including that of traditional dual-listed Chinese ADRs. Nevertheless, over the longer horizon, the excess returns of a portfolio composed solely of single-listed Chinese ADRs outperform a portfolio of dual-listed Chinese ADRs, but underperform a benchmark portfolio composed of U.S. firms matched on the basis of their IPO date. We also find that the portfolio formed solely of single-listed Chinese ADRs exhibits significantly distinct loadings on the common portfolio factors from the portfolio formed of dual-listed Chinese ADRs and from the benchmark portfolio of U.S. stocks.

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“…, 2008), and customer retention (Ting, 2012). Newsletters are a potent source of information when it comes to investors' decisions (Anthony and Rennie, 1989; Brown et al. , 2013; Graham and Harvey, 1997; Kumar, 2009), even though the information contained might not be significant in outperforming market benchmarks (Jaffe and Mahoney, 1999).…”

Section: Literature Reviewmentioning

confidence: 99%

How am I doing financially compared to expectations? An experimental comparison of messaging strategies in investor newsletters

Pulk

Uusberg

Riitsalu

2022

IJBM

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PurposeThis study aims to investigate which messaging strategies employed in personalised newsletters could be used for improving the propensity of individuals to save or invest and secure their financial well-being.Design/methodology/approachThe authors conducted a field experiment with 4,782 clients at an Estonian retail bank. For three months (after measuring baseline levels for a month), the participants received personalised monthly newsletters with either a praising or a scolding message based on comparing their recent investment decisions to their past decisions.FindingsTheir results suggest that newsletters could serve as an encouragement for those who already invest significant amounts each month and a reminder for those who have stopped regular investing for a month. The newsletters robustly increased investments in securities accounts for these groups.Research limitations/implicationsThe authors contribute to the marketing literature by examining praise and scolding messaging strategies within the same channel and company, focussing on the individual's past behaviour. They raise several hypotheses to be tested in future randomised controlled trials (RCTs).Practical implicationsThe authors’ results show the importance of investor behaviour analysis as the effectiveness of the newsletter intervention largely depended on the type of customer it was served to. This highlights the importance of personalisation.Originality/valueThe results show that a given message tends to influence only specific groups of investors. Identifying these groups is valuable information for messaging strategies.

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Do Investment Newsletters Move Markets?

Cited by 10 publications

References 52 publications

A Portfolio Perspective on Fortune Magazine’s “World’s Most Admired” Companies

A Portfolio Perspective on Fortune Magazine’s “World’s Most Admired” Companies

IPO and Aftermarket Performance of Single‐Listed Chinese ADRs

How am I doing financially compared to expectations? An experimental comparison of messaging strategies in investor newsletters

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