• You have to get a sample of around 100 companies. 

• Ideas: Largest 100 in Illinois;  Largest international sales among US firms; Specific Industry samples, Best companies to work for, Best brands, Best small companies; Fast food industry.

• Talk to me how to get samples.  Industry codes: Click

Create a txt file with ticker symbols;  Example: Sample.txt

Read instructions in: Instructions-CRSP and Instructions-IBES

Use the spreadsheet: Sample.xls

Assignment:

You must generate the BB chart. For at least four mismatched firms i.e.

earnings surprise is positive while abnormal returns are negative
or
earnings surprise is negative while abnormal returns are positive

Find out why accounting results were ignored by the market.

Presentation (10 minutes) and Paper (2 pages):

How was the sample chosen?
How many companies and what industries?
BB Chart - did it follow the expectation?
How much abnormal return can you earn if you can forecast perfectly?
Were there any mismatched firms?
If so explain why by looking at the firms' annual report and news reports from that year.
 

Order of presentation:  Click 120109