,1987) document return reversals over longer horizons. Firms with poor three- to five-year past performance earn higher average returns than firms that performed well in the past. There has been an extensive literature on whether these return patterns reflect an improper response by markets to information

-run earnings “drift, ” but negative correlation between future returns and long-term past stock market and accounting performance. The theory also offers several untested implications and implications for corporate fi-nancial policy. IN RECENT YEARS A BODY OF evidence on security returns has presented a sharp

losers outperform long-term past winners over the subsequent three to five years. Jegadeesh (1990) and Lehmann (1990) find short-term return reversals. Jegadeesh and

. For example, Jegadeesh and Titman (1993), using a U.S. sample of NYSE/ AMEX stocks over the period from 1965 to 1989, find that a strategy that buys past six-month winners (stocks in the top performance decile) and shorts past six-month losers (stocks in the bottom performance decile) earns approximately one

the respondents' remembered utility. The evaluation of remembered utility requires the individual to remember a stream of experiences and to aggregate them in some way. Ideally, one would hope that the individual who reports his or her overall remembered utility for a period performs the task of summing

negative ~positive! earnings surprises over the next eight quarters. Past trading volume also predicts both the magnitude and persistence of price momentum. Specifically, price momentum effects reverse over the next five years, and high ~low! volume winners ~losers! experience faster reversals

Serious problems exist with reading achievement in many United States schools. However, much of the commonly accepted wisdom about the academic performance of United States students is false. The best evidence we have on the reading crisis indicates that no crisis exists on average in United States

A cohort of chemical engineering students has been taught in an experimental sequence of five chemical engineering courses, beginning with the introductory course in the Fall 1990 semester. Differences in academic performance have been observed between students from rural and small town backgrounds

from syndication data for the five preceding years. Performance is then taken as the exit rate over the life of the fund, which lasts 10-12 years. Thus, we are relating a VC firm's past network position to its future performance. Moreover, we find little evidence that past exits drive future

The returns earned by U.S. equities since 1926 exceed estimates derived from theory, from other periods and markets, and from surveys of institutional inves-tors. Rather than examine historic experience, we estimate the equity premium from the discount rate that equates market valuations