Sum, V. (2012). Stock performance and the firm's training program. International Research Journal of Applied Finance, 3(5), 554-559.
9 Pages Posted: 15 Mar 2012 Last revised: 25 Sep 2012
Date Written: March 15, 2012
This paper examines if a portfolio of firms with the best training program consistently outperforms the market. This study constructs an equally-weighted portfolio of top 10 companies ranked in the Training Top 125 each year from 2001 to 2010. In particular, this study compares the performance of each equally-weighted portfolio to the performance the S&P 500 index and value-weighted CRSP index using monthly CRSP return data. The results show that 9 out of the 10 portfolios outgain the value-weighted CRSP index by as high as 100 basis points and as low as 11 basis points, and 7 out of the 10 portfolios outperform the S&P 500 index by as low as 7 basis points and as high as 80 basis points.
Keywords: Training, Portfolio Performance, Efficient Market Hypothesis
JEL Classification: G11, G12, G14
Suggested Citation: Suggested Citation
Sum, Vichet, Stock Performance and the Firm’s Training Program (March 15, 2012). Sum, V. (2012). Stock performance and the firm's training program. International Research Journal of Applied Finance, 3(5), 554-559. . Available at SSRN: https://ssrn.com/abstract=2023206