Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers

@article{Piotroski2000ValueIT,
  title={Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers},
  author={Joseph D. Piotroski},
  journal={Journal of Accounting Research},
  year={2000},
  volume={38},
  pages={1-41}
}
  • Joseph D. Piotroski
  • Published 2000
  • Economics
  • Journal of Accounting Research
  • This paper examines whether a simple accounting-based fundamental analysis strategy, when applied to a broad portfolio of high book-to-market firms, can shift the distribution of returns earned by an investor. I show that the mean return earned by a high book-to-market investor can be increased by at least 7 percent annually through the selection of financially strong high BM firms while the entire distribution of realized returns is shifted to the right. In addition, an investment strategy… CONTINUE READING

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