Student-Managed Portfolios: Wisdom of Independent Crowds?

Autor:	Daniel Dorn
Rok vydání:	2017
Předmět:	050208 finance media_common.quotation_subject 05 social sciences General Medicine Investment decisions Crowds Voting 0502 economics and business Outlier Economics Econometrics Portfolio 050207 economics Excess return Stock (geology) media_common
Zdroj:	The Journal of Trading. 13:17-26
ISSN:	2168-8427 1559-3967
DOI:	10.3905/jot.2018.13.1.017
Popis:	This study uses a student-managed portfolio as a novel setting to examine the effect of crowd wisdom on investment decisions. Crowd wisdom is measured by peer voting at Drexel University’s Dragon Fund, where student managers vote to accept or reject each other’s recommendations. Based on a sample of 202 stock pitches between 2008 and 2016, the main finding is that accepted stocks significantly outperform rejected stocks. For example, accepted stocks returned 3.0% in excess of their corresponding sector benchmark during the 12 weeks following the recommendation, significantly higher than the negative 2.9% excess returns of rejected stocks. The results are robust to outliers and different evaluation horizons, are not due to size and book-to-market tilts, and cannot be explained by professional observers whose expertise might influence student votes.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::407a2c33c9307153ce27d53d334fe966 https://doi.org/10.3905/jot.2018.13.1.017 Zobrazit plný text záznamu