Hirshleifer, David; Jiang, Danling - In: Review of Financial Studies 23 (2010) 9, pp. 3401-3436
Behavioral theories suggest that investor misperceptions and market mispricing will be correlated across firms. We use equity and debt financing to identify common misvaluation across firms. A zero-investment portfolio (UMO, undervalued minus overvalued) built from repurchase and issue firms...