The roles of past returns and firm fundamentals in driving US stock price movements

Expected Profitability, the 52-Week High and the Idiosyncratic Volatility Puzzle

“…This results in a slow adjustment process and will generate momentum in returns in the direction of future profit. Previous work, for example, Battman et al, Chen et al (2014), Hong and Wu (2016) and Zhu et al (2020) all note the importance of considering both fundamental-and market-based information, which is consistent with the model of Hong and Stein (1999). While this paper is most closely related to Malagon, Moreno, and Rodríguez (2015) and George, Hwang, and Li (2018), it is distinguished in several aspects.…”

A firm level analysis of asymmetric response of U.S. stock returns to exchange rate movements

“…Secondly, we extend the literature to account for the role of different market conditions such as pre-and post-global financial crisis (GFC) periods. Our desire to consider GFC is corroborated by the findings of Hong and Wu (2016) which show that firm-specific information is germane for explaining stock price movements particularly during turbulent times measured with the period of the global financial crisis. In addition, we are supported by a heap of empirical evidences which back the role of GFC (see, e.g., Aquino, 2005;Chkili & Nguyen, 2014;Chun Mun, 2008;Coudert, Couharde, & Mignon, 2011;Dahir, Mahat, Razak, & Noordin, 2017;Dua & Tuteja, 2016;Mahapatra & Bhaduri, 2019;Salisu & Ndako, 2018;Sui & Sun, 2015).…”

Harnessing Blockchain Technology In Fundamental Analysis For Investment Decision Making

“…Fundamental analysis is essentially looking at the fundamentals and underlying economics of the companies to discover their actual worth in value (Borowski, 2014;Edirisinghe & Zhang, 2008;Hong & Wu, 2016;Krzywda, 2010;Petrusheva & Jordanoski, 2016;Pomykalska & Pomykalski, 2008). In view of this, the accuracies in financial reports, historical data, financial statements and current information are vital for fundamental analysis.…”