Stock Performance and the Firm’s Training Program
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