U.S. stocks have been shown to earn higher returns during earnings announcement months than during non-announcement months. We document that this earnings announcement premium exists across the globe. Using data from 46 countries, we find that the average stock return during earnings...

Prior to investing in a firm, fund managers must evaluate it. This tilts funds’ future portfolio positions toward former portfolio investments, as the past awareness of the firm decreases the cost of evaluating it in the future. We find that firms with many former investors experience...