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Lim, B. & Rosário, J. (2010). The performance and impact of stock picks mentioned on 'mad money'. Applied Financial Economics. 20 (14), 1113-1124
B. Lim and J. F. Rosário, "The performance and impact of stock picks mentioned on 'mad money'", in Applied Financial Economics, vol. 20, no. 14, pp. 1113-1124, 2010
@article{lim2010_1732233713466, author = "Lim, B. and Rosário, J.", title = "The performance and impact of stock picks mentioned on 'mad money'", journal = "Applied Financial Economics", year = "2010", volume = "20", number = "14", doi = "10.1080/09603101003761887", pages = "1113-1124", url = "http://www.tandfonline.com/doi/full/10.1080/09603101003761887" }
TY - JOUR TI - The performance and impact of stock picks mentioned on 'mad money' T2 - Applied Financial Economics VL - 20 IS - 14 AU - Lim, B. AU - Rosário, J. PY - 2010 SP - 1113-1124 SN - 0960-3107 DO - 10.1080/09603101003761887 UR - http://www.tandfonline.com/doi/full/10.1080/09603101003761887 AB - We analyse both the market reaction and the long-term returns of stock picks mentioned on the Consumer News and Business Channel (CNBC) programme 'Mad Money', hosted by former hedge fund manager Jim Cramer. We find that Cramer's stock-picking style is consistent with a positive-feedback trading strategy, favouring stocks which have outperformed over an interval prior to the pick date. Subsequent to a pick, Cramer's immediate effect on a stock appears inversely proportional to the corresponding firm's market capitalization. The returns over a 6-month horizon provide some evidence in favour of Cramer's stock-picking ability. In particular, his recommendations on small-cap stocks accurately predict the long-run trends. ER -