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Article
Most admired companies: Admirable performance
Journal of Applied Finance and Banking (2012)
  • Vichet Sum
Abstract

This paper shows that most admired companies generate admirable stock performance relative to the market. The current study analyses risk premiums and risk-adjusted excess returns of a portfolio of firms ranked as the most admired companies in the United States from 2006 to 2011. The results show that average risk premiums of an equal-weighted portfolio of most admired firms are economically superior than the market risk premiums from 2006 to 2011 (except 2010). For the 1-year holding period, the portfolio average risk-adjusted excess returns are all positive, but 2010, and some even statistically significant. The portfolio exhibits average positive risk-adjusted excess returns for the 3-year holding period intervals; the alphas are statistically significant for the 2006-2008 period.

Keywords
  • Risk adjusted excess returns,
  • most admired companies,
  • efficient market hypothesis
Publication Date
December 30, 2012
Citation Information
Vichet Sum. "Most admired companies: Admirable performance" Journal of Applied Finance and Banking Vol. 2 Iss. 6 (2012)
Available at: http://works.bepress.com/vichetsum/23/