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Journal of Financial Economics Vol. 135 No. 1 2020

Anomalies across the globe: Once public, no longer existent?

Heiko Jacobs1; Sebastian Müller2

1 University of Duisburg-Essen · 2 German Graduate School of Management and Law

open access

Abstract

Motivated by McLean and Pontiff (2016), we study the pre- and post-publication return predictability of 241 cross-sectional anomalies in 39 stock markets. We find, based on more than two million anomaly country-months, that the United States is the only country with a reliable post-publication decline in long-short returns. Collectively, our meta-analysis of return predictors suggests that barriers to arbitrage trading can create segmented markets and that anomalies tend to represent mispricing instead of data mining.

DOI
10.1016/j.jfineco.2019.06.004
Volume
135
Issue
1
Pages
213-230
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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