In a developing country in which the majority investors are individuals, the stock market is a contrarian one. In contrast, in a developed country in which the majority investors are institutions, the stock market is a momentum one. Furthermore, the industry type is important in explaining the momentum phenomena, with different effects in momentum and contrarian countries. Specifically, industry factors will decrease the momentum phenomenon and increase the contrarian one. The investment portfolios presented in this work are developed by buying individual stocks which are part of a winning industry in a contrarian country, and individual stocks which are part of a median industry in a momentum country, thus earning more profits.
|Number of pages||11|
|Journal||Investment Management and Financial Innovations|
|Publication status||Published - 2010|
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics
- Strategy and Management