Stock Market Anomalies and Baseball Cards
34 Pages Posted: 22 Jun 2016 Last revised: 15 Feb 2017
Date Written: February 13, 2017
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: Suggested Citation