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dc.contributor.authorZou, Len_US
dc.contributor.authorChen, Ren_US
dc.contributor.editorOzturk, Ien_US
dc.date.accessioned2017-01-29T23:08:16Z
dc.date.available2017en_US
dc.date.available2016-12-08en_US
dc.date.issued2017en_US
dc.identifierhttp://www.econjournals.com/index.php/ijefi/indexen_US
dc.identifier.citationInternational Journal of Economics and Financial Issues, 2017, 7 (1), pp. 133 - 143 (10)en_US
dc.identifier.issn2146-4138en_US
dc.description.abstractThis study documents that contrarian investment strategies offer superior returns because these strategies exploit investors’ expectation errors. There are two sources of expectation errors, naïve extrapolation of past performance and biased analysts’ earnings forecasts. Our results suggest that investors naively extrapolate past performance and overestimate the future growth rates of glamour stocks relative to value stocks. In addition, analysts tend to be excessively pessimistic about value stocks and over optimistic about glamour stocks. We find that both positive earnings surprises and negative earnings surprises significantly affect subsequent returns. However, negative earnings surprises have less impact on value stocks relative to glamour stocks. We also find new evidence that investor sentiments could be an alternative source of superior performances from value stocks. Our results indicate that when the investor sentiment is higher, value stocks earn significant higher returns than glamour stocks.en_US
dc.format.extent133 - 143 (10)en_US
dc.languageEnglishen_US
dc.publisherEconJournalsen_US
dc.rightsThis work is licensed under a Creative Commons Attribution 4.0 International License.
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.titleEarnings surprises, investors sentiments and contrarian strategiesen_US
dc.typeJournal Article
dc.citation.volume7en_US
dc.description.confidentialfalseen_US
dc.description.confidentialfalseen_US
dc.description.confidentialfalseen_US
dc.identifier.elements-id285154
dc.relation.isPartOfInternational Journal of Economics and Financial Issuesen_US
dc.citation.issue1en_US
dc.citation.issue1en_US
dc.citation.issue1en_US
dc.description.publication-statusPublisheden_US
dc.description.publication-statusPublisheden_US
dc.description.publication-statusPublisheden_US
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/College of Business
pubs.organisational-group/Massey University/College of Business/School of Economics and Finance
dc.identifier.harvestedMassey_Dark
pubs.notesNot knownen_US
pubs.declined2017-01-16T13:21:17.121+1300


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This work is licensed under a Creative Commons Attribution 4.0 International License.
Except where otherwise noted, this item's license is described as This work is licensed under a Creative Commons Attribution 4.0 International License.