Stock Market Anomalies and Baseball Cards

34 Pages Posted: 22 Jun 2016 Last revised: 15 Feb 2017

See all articles by Joseph Engelberg

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management

Linh Le

University of South Florida

Jared Williams

University of South Florida

Date Written: February 13, 2017

Abstract

Baseball cards exhibit anomalies that are analogous to those that have been documented in financial markets, namely, momentum, price drift in the direction of past fundamental performance, and IPO underperformance. Momentum profits are higher among active players than retired players, and among newer sets than older sets. Regarding IPO underperformance, we find newly issued rookie cards underperform newly issued cards of veteran players, and that newly issued sets underperform older sets. The results are broadly consistent with models of slow information diffusion and short-selling constraints.

Keywords: Momentum, Post-Earnings Announcement Drift, IPO underperformance, baseball cards

JEL Classification: G02, G14

Suggested Citation

Engelberg, Joseph and Le, Linh and Williams, Jared, Stock Market Anomalies and Baseball Cards (February 13, 2017). Available at SSRN: https://ssrn.com/abstract=2798951 or http://dx.doi.org/10.2139/ssrn.2798951

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

Linh Le

University of South Florida ( email )

Tampa, FL 33620
United States

Jared Williams (Contact Author)

University of South Florida ( email )

Tampa, FL 33620
United States

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