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Stock market anomalies and baseball cards
Author(s) -
Engelberg Joseph,
Thompson Linh,
Williams Jared
Publication year - 2020
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/fire.12223
Subject(s) - initial public offering , momentum (technical analysis) , stock (firearms) , business , financial economics , stock price , monetary economics , economics , engineering , biology , mechanical engineering , paleontology , series (stratigraphy)
Abstract Baseball cards exhibit anomalies that are analogous to those that are documented in financial markets, namely, momentum, price drift in the direction of past fundamental performance, and initial public offering (IPO) underperformance. Momentum is higher among active players than retired players, and among newer sets than older sets. Regarding IPO underperformance, we find that 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.