Are Cover Stories Effective Contrarian Indicators?

Authors

Tom Arnold, University of RichmondFollow
John H. Earl, University of RichmondFollow
David S. North, University of RichmondFollow

DOI

10.2469/faj.v63.n2.4520

Abstract

Headlines from cover stories are collected over a twenty year period from Business Week, Fortune, and Forbes to determine if positive stories are associated with superior future performance and if negative stories are associated with inferior future performance for the featured firm (when compared to an index or to another firm within the same industry and of the same size). Statistical testing implies that positive stories generally indicate the end of superior performance and negative news generally indicates the end of poor performance.

Document Type

Article

Publication Date

2-2007

Publisher Statement

Copyright © 2007 CFA Institute. DOI: 10.2469/faj.v63.n2.4520.

The definitive version is available at: http://www.cfapubs.org/doi/pdf/10.2469/faj.v63.n2.4520.

Full citation:

Arnold, Tom, John H. Earl, and David S. North. "Are Cover Stories Effective Contrarian Indicators?" Financial Analysts Journal 63, no. 2 (March/April 2007): 70-75. doi:10.2469/faj.v63.n2.4520.

Recommended Citation

Arnold, Tom; Earl, John H.; and North, David S., "Are Cover Stories Effective Contrarian Indicators?" (2007). Finance Faculty Publications. 1.
https://scholarship.richmond.edu/finance-faculty-publications/1