Geleitwort | 6 |
Vorwort | 8 |
Table of Contents | 10 |
List of Figures | 13 |
List of Tables | 15 |
List of Abbreviations | 17 |
List of Symbols | 19 |
Latin Symbols | 19 |
Greek Symbols | 23 |
Further Symbols | 24 |
1 Introduction | 25 |
1.1 Motivation and Research Questions | 25 |
1.2 Structure of the Thesis | 28 |
2 Basics about Technical and Fundamental Trading | 29 |
2.1 Efficient Markets versus Active Trading | 29 |
2.2 Technical Trading Strategies | 32 |
2.2.1 Technical Trading at a Glance | 32 |
2.2.2 The Price Momentum Strategy Jegadeesh and Titman (1993) | 34 |
2.3 Fundamental Trading Strategies | 37 |
2.3.1 Fundamental Trading at a Glance | 37 |
2.3.2 The Operating Cash Flow Strategy Sloan (1996) | 39 |
2.4 Combination of Technical and Fundamental Trading | 43 |
2.4.1 Potential of Combining Fundamental and Technical Trading | 43 |
2.4.2 Related Literature | 44 |
3 Combination of Momentum and Operating Cash Flow Strategies | 46 |
3.1 Idea and Motivation | 46 |
3.2 Profits of the Pure and Combination Strategies | 48 |
3.2.1 Methodology and Sample | 48 |
3.2.2 Empirical Results and Discussion | 54 |
3.3 Decomposition of the Outperformance | 59 |
3.3.1 Introduction and Methodology | 59 |
3.3.2 Empirical Results and Discussion | 63 |
3.4 Alternative Explanations for the Combination Effect | 65 |
3.4.1 Extremity of Momentum and Operating Cash Flows | 65 |
3.4.2 Earnings Surprises, Accrual Anomaly, and Idiosyncratic Risk | 66 |
3.5 Practicability of the Trading Strategies | 71 |
3.5.1 Portfolio Size | 71 |
3.5.2 Stock Size | 72 |
3.5.3 Stock Liquidity | 74 |
3.5.4 Success after Trading Costs | 75 |
3.6 Summary and Conclusion | 77 |
4 A Closer Look at the Market Reactions | 79 |
4.1 Introduction and Motivation | 79 |
4.2 Preliminary Analysis: Reference Trading Strategy | 81 |
4.3 Market Reactions in the Short Term | 85 |
4.4 Returns Surrounding Earnings Announcements | 91 |
4.5 Influence of Investor Attention | 98 |
4.6 Market Reactions in the Long Term | 104 |
4.7 Summary and Conclusion | 110 |
5 Fundamental and Technical Trading by Mutual Funds | 113 |
5.1 Introduction and Motivation | 113 |
5.2 Framework for the Mutual Fund Analysis | 115 |
5.3 Stock Universe of Mutual Funds | 122 |
5.4 Pursuit of the Trading Strategies | 127 |
5.5 Success of the Trading Strategies | 144 |
5.6 Decomposition of Mutual Fund Returns | 157 |
5.7 Summary and Conclusion | 163 |
6 Concluding Remarks | 165 |
6.1 Summary of Results | 165 |
6.2 Limitations and Propositions for Future Research | 167 |
References | 169 |