Mark Grinblatt

Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors (2003)

Grinblatt, Mark, Keloharju, Matti, Ikäheimo, Seppo

This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his...

Journal of Financial Economics 00 (2003) 000-000 (2003)

Mark Grinblatt, Matti Keloharju

Finnish investors realize losses more than gains toward the end of December. Moreover, they repurchase the same stocks recently sold. The repurchase rate depends on loss magnitude, firm size, and how...

Mercados financieros y estrategia empresarial (2003)

Grinblatt, Mark, Titman, Sheridan

Traducción de: Financial Markets and Corporate Strategy

Mercados financieros y estrategia empresarial (2003)

Grinblatt, Mark, Titman, Sheridan

Traducción de: Financial Markets and Corporate Strategy

Debt Policy, Corporate Taxes, and Discount Rates (2002)

Grinblatt, Mark, Liu, Jun

This paper studies the valuation of assets with debt tax shields when debt policy is a general time-dependent function of the asset's unlevered cash flows, value, and history. In a continuous-time...

S))))))))))))))))))))))))))))))))))q (2002)

Mark Grinblatt, Toshiyuku Otsuki, Matthew Spiegel For, Stephen J. Brown, William N. Goetzmann

this paper, we find that existing classifications do a poor job at forecasting differences in future performance. We propose a different method for grouping mutual funds which is relatively...

The Disposition Effect and Momentum (2001)

Grinblatt, Mark, Han, Bing

Prior experimental and empirical research documents that many investors have a lower propensity to sell those stocks on which they have a capital loss. This behavioral phenomenon, known as \the...

Corporate Leverage and Currency Crises (2001)

Arturo Bris, Yrj Koskinen, Paul Gilson, Will Goetzmann, Mark Grinblatt, Bengt Holmstrm, ...

This paper provides an explanation of currency crises based on an argument that bailing out financially distressed exporting firms through a currency depreciation is ex-post optimal. Exporting firms...

Investigating the Sources of Default Risk: Lessons from Empirically Evaluating Credit Risk Models (2001)

Gurdip Bakshi, Dilip Madan, Frank Zhang, Elton Daal, Michael Fu, ...

From a credit risk perspective, little is known about the distress factors # economy-wide or #rm-speci#c - that are important in explaining variations in defaultable coupon yields. This paper...

Information Aggregation, Currency Swaps, and the Design of Derivative Securities (2000)

Bhagwan Chowdhry, Mark Grinblatt, David Levine, Tony Bernardo, Peter Demarzo, John Riley

A security design model shows that (i) firms needing to finance their operations should issue dierent securities to different groups of investors in order to aggregate their disparate information and...

Tax-Loss Trading and Wash Sales (2000)

Mark Grinblatt, Matti Keloharju

Tax-Loss Trading and Wash Sales An analysis of trades in the Finnish stock market around the turn of the year 1994-95, 199596, and 1996-97 shows that Finnish investors tend to realize losses more...

Tax Loss Trading and Wash Sales (2000)

Grinblatt, Mark, Keloharju, Matti

An analysis of Finnish investors' stock trades shows that they realize losses more than gains towards the end of December. Moreover, they repurchase the same stocks recently sold. The repurchase rate...

The Relative Pricing of Eurodollar Futures and Forward Contracts (1999)

Jegadeesh, Narasimhan, Grinblatt, Mark

Recent research reports significant differences between Eurodollar futures and forward interest rates. In this paper, we document that the futures-forward yield difference was economically and...

The Relative Pricing of Eurodollar Futures and Forward Contracts (1999)

Jegadeesh, Narasimhan, Grinblatt, Mark

Recent research reports significant differences between Eurodollar futures and forward interest rates. In this paper, we document that the futures-forward yield difference was economically and...

What Makes Investors Trade? (1999)

Mark Grinblatt, Matti Keloharju, Mirja Lamminp, Tapio Tolvanen, Lauri Tommila

A unique data set allows us to monitor the buys and sells of each individual and institution in the Finnish stock market. With this data set, we identify the determinants of buying and selling...

Financial Innovation And The Role Of Derivative Securities: An Empirical Analysis Of The Treasury Strips Program (1999)

Mark Grinblatt, Francis A. Longsta, Gregory Duee, Mark Fisher, Hedi Kallal, Avi Kamara, ...

The role that financial innovation plays in financial markets is very controversial. To provide insight into this role, we examine how market participants use the highly successful Treasury STRIPS...

The Cross Section of Expected Returns and its Relation to Past Returns: New Evidence (1999)

Grinblatt, Mark, Moskowitz, Tobias J.

This paper parsimoniously characterizes how past returns affect the cross-section of expected returns. Using Fama-MacBeth regressions, it shows that the momentum and reversals associated with past...

Information Aggregation, Currency Swaps, and the Design of Derivative Securities (1997)

Chowdhry, Bhagwan, Grinblatt, Mark

A model of security design based on the principle of information aggregation and alignment is used to show that (i) firms needing to finance their operations should issue different securities to...

Mutual Fund Styles (1995)

Mark Grinblatt, Toshiyuku Otsuki, Matthew Spiegel For, Stephen J. Brown, William N. Goetzmann

this paper, we find that existing classifications do a poor job at forecasting differences in future performance. We propose a different method for grouping mutual funds which is relatively...

An Analytic Solution for Interest Rate Swap Spreads (1995)

Grinblatt, Mark

This paper argues that liquidity differences between government securities and short term Eurodollar borrowings account for interest rate swap spreads. It then models liquidity as a linear function...

Do Benchmarks Matter? Do Measures Matter? A Study of Monthly Mutual Fund Returns (1991)

Grinblatt, Mark, Titman, Sheridan

This paper empirically examines the extent to which some of the different performance measures developed in the literature provide different evaluations of performance. It also examines how robust...

A Comparison of Measures of Abnormal Performance on a Sample of Monthly Mutual Fund Returns, formerly titled; The Evaluation of Mutual Fund Performance: An Analysis of Monthly Returns (1989)

Grinblatt, Mark

This paper empirically examines the Jensen Measure, the Positive Period Weighting Measure, developed in Grinblatt and Titman (1987a), measures developed from the Treynor-Mazuy (1966) quadratic...

Information Aggregation, Security Design, and Currency Swaps

Bhagwan Chowdhry, Mark Grinblatt, David Levine

A security design model shows that multinational firms needing to finance their operations should issue different securities to investors in different countries in order to aggregate their disparate...

Sensation Seeking, Overconfidence, and Trading Activity

Mark Grinblatt, Matti Keloharju

This study analyzes the role that two psychological attributes%u2014sensation seeking and overconfidence%u2014play in the tendency of investors to trade stocks. Equity trading data are combined with...

Momentum Investment Strategies, Portfolio Performance, and Herding: A Study of Mutual Fund Behavior.

Grinblatt, Mark, Titman, Sheridan, Wermers, Russ

This study analyzes the extent to which mutual funds purchase stocks based on their past returns as well as their tendency to exhibit 'herding' behavior (i.e., buying and selling the same stocks at...

Do Industries Explain Momentum?

Tobias J. Moskowitz, Mark Grinblatt

This paper documents a strong and prevalent momentum effect in industry components of stock returns which accounts for much of the individual stock momentum anomaly. Specifically, momentum investment...

Financial Innovation and the Role of Derivative Securities: An Empirical Analysis of the Treasury STRIPS Program

Mark Grinblatt, Francis A. Longstaff

The role that financial innovation plays in financial markets is very controversial. To provide insight into this role, we examine how market participants use the highly successful Treasury STRIPS...

What Makes Investors Trade?

Mark Grinblatt

A unique data set allows us to monitor the buys, sells, and holds of individuals and institutions in the Finnish stock market on a daily basis. With this data set, we employ Logit regressions to...

How Distance, Language, and Culture Influence Stockholdings and Trades

Mark Grinblatt

This paper documents that investors are more likely to hold, buy, and sell the stocks of Finnish firms that are located close to the investor, that communicate in the investor's native tongue, and...

Signalling and the Pricing of New Issues.

Grinblatt, Mark, Hwang, Chuan Yang

This paper develops a signaling model with two signals, two attributes, and a continuum of signal levels and attribute-types to explain new issue underpricing. Both the fraction of the new issue...

The Persistence of Mutual Fund Performance.

Grinblatt, Mark, Titman, Sheridan

This paper analyzes how mutual fund performance relates to past performance. These tests are based on a multiple portfolio benchmark that was formed on the basis of securities characteristics. The...

Relative Pricing of Eurodollar Features and Forward Contracts.

Grinblatt, Mark, Jegadeesh, Narasimhan

Past research explains observed spreads between futures and forward Eurodollar yields as being due to the futures contract's mark-to-market feature. The authors derive closed-form solutions for this...

Do Benchmarks Matter? Do Measures Matter? A Study of Monthly Mutual Fund Returns

Mark Grinblatt, Sheridan Titman

This paper empirically examines the extent to which some of the different performance measures developed in the literature provide different evaluations of performance. It also examines how robust...

Signalling and the Pricing of Unseasoned New Issues

Mark Grinblatt, Chuan Yang Hwang

This paper develops a signalling model with two signals, two attributes, and a continuum of signal levels and attribute-types to explain a puzzling phenomenon: the underpricing of new issues. Both...

Signalling and the Pricing of Unseasoned New Issues

Mark Grinblatt, Chuan Yang Hwang

This paper develops a signalling model with two signals, two attributes, and a continuum of signal levels and attribute-types to explain a puzzling phenomenon: the underpricing of new issues. Both...

Portfolio Performance Evaluation: Old Issues and New Insights

Mark Grinblatt, Sheridan Titman

This paper presents a simple model that provides insights about various measures of portfolio performance. The model explores three criticisms of these measures: (i) the inability to identify an...

Adverse Risk Incentives and the Design of Performance-Based Contracts

Mark Grinblatt, Sheridan Titman

In this paper, option pricing theory is used to value and analyze many performance-based fee contracts that are currently in use. A potential problem with some of these contracts is that they may...

Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors

Mark Grinblatt, Matti Keloharju, Seppo Ikäheimo

This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his...

Debt Policy, Corporate Taxes, and Discount Rates

Mark Grinblatt, Jun Liu

This paper studies the valuation of assets with debt tax shields when debt policy is a general time-dependent function of the asset's unlevered cash flows, value, and history. In a continuous-time...

The Disposition Effect and Momentum

Mark Grinblatt, Bing Han

Prior experimental and empirical research documents that many investors have a lower propensity to sell those stocks on which they have a capital loss. This behavioral phenomenon, known as \the...

Tax Loss Trading and Wash Sales

Mark Grinblatt, Matti Keloharju

An analysis of Finnish investors' stock trades shows that they realize losses more than gains towards the end of December. Moreover, they repurchase the same stocks recently sold. The repurchase rate...

The Cross Section of Expected Returns and its Relation to Past Returns: New Evidence

Mark Grinblatt, Tobias Moskowitz

This paper parsimoniously characterizes how past returns affect the cross-section of expected returns. Using Fama-MacBeth regressions, it shows that the momentum and reversals associated with past...

Information Aggregation, Currency Swaps, and the Design of Derivative Securities

Bhagwan Chowdhry, Mark Grinblatt

A model of security design based on the principle of information aggregation and alignment is used to show that (i) firms needing to finance their operations should issue different securities to...

An Analytic Solution for Interest Rate Swap Spreads

Mark Grinblatt

This paper argues that liquidity differences between government securities and short term Eurodollar borrowings account for interest rate swap spreads. It then models liquidity as a linear function...

A Comparison of Measures of Abnormal Performance on a Sample of Monthly Mutual Fund Returns, formerly titled; The Evaluation of Mutual Fund Performance: An Analysis of Monthly Returns

Mark Grinblatt

This paper empirically examines the Jensen Measure, the Positive Period Weighting Measure, developed in Grinblatt and Titman (1987a), measures developed from the Treynor-Mazuy (1966) quadratic...

The Cross Section Of Expected Returns And Its Relation To Past Returns: New Evidence

Tobias J. Moskowitz, Mark Grinblatt

This paper parsimoniously characterizes how past returns affect the cross-section of expected returns. Using Fama-MacBeth regressions, it shows that the momentum and reversals associated with past...

Distance, Language, and Culture Bias: The Role of Investor Sophistication

Mark Grinblatt, Matti Keloharju

This paper documents that investors are more likely to hold, buy and sell the stocks of Finnish firms that are located close to the investor, that communicate in the investor's native tongue, and...

What Makes Investors Trade?

Mark Grinblatt, Matti Keloharju

A unique data set allows us to monitor the buys, sells, and holds of individuals and institutions in the Finnish stock market on a daily basis. With this data set, we employ Logit regressions to...

Tax-Loss Trading and Wash Sales

Mark Grinblatt, Matti Keloharju

An analysis of Finnish investors' stock trades shows that they realize losses more than gains towards the end of December. Moreover, they repurchase the same stocks recently sold. The repurchase rate...

The Disposition Effect and Momentum

Mark Grinblatt

The tendency of some investors to hold on to their losing stocks creates a spread between a stock's fundamental value and its equilibrium price, as well as price underreaction to information. Spread...

What Do We Really Know About the Cross-Sectional Relation Between Past and Expected Returns?

Tobias J. Moskowitz, Mark Grinblatt

Multihorizon temporal relationships between stock returns are complex due to confounding sources of return premia, microstructure effects, and changes in the relationship over various horizons. We...

Positive Portfolio Factors

Stephen J. Brown, William N. Goetzmann, Mark Grinblatt

We use an iterative relocation algorithm to identify factors in common stock returns. The benefit of the approach is that factors are portfolios of assets with non-negative weights. As a result, they...

Information Aggregation, Security Design, and Currency Swaps

Bhagwan Chowdhry, Mark Grinblatt, David K. Levine

A security design model shows that multinational firms needing to finance their operations should issue different securities to investors in different countries in order to aggregate their disparate...

An Analytic Solution for Interest Rate Swap Spreads

Mark Grinblatt

This paper argues that liquidity differences between government securities and short term Eurodollar borrowings account for interest rate swap spreads. It then models the convenience of liquidity as...

Positive Portfolio Factors

William N. Goetzmann, Stephen J. Brown, Mark Grinblatt

We use an iterative relocation algorithm to identify factors in common stock returns. The benefit of the approach is that factors are portfolios of assets with non-negative weights. As a result, they...

The Disposition Effect and Momentum

Grinblatt, Mark, Han, Bing

The tendency of some investors to hold on to their losing stocks creates a spread between a stock's fundamental value and its equilibrium price, as well as price underreaction to information. Spread...

Debt policy, corporate taxes, and discount rates

Grinblatt, Mark, Liu, Jun

This paper applies the standard risk-neutral valuation framework to tax shields generated by dynamic debt policies. We derive a partial differential equation (PDE) for the value of the debt tax...

Positive Portfolio Factors

Stephen J. Brown, William N. Goetzmann, Mark Grinblatt

We use an iterative relocation algorithm to identify factors in common stock returns. The benefit of the approach is that factors are portfolios of assets with non-negative weights. As a result, they...

The Disposition Effect and Momentum

Mark Grinblatt, Bing Han

Prior experimental and empirical research documents that many investors have a lower propensity to sell those stocks on which they have a capital loss. This behavioral phenomenon, known as 'the...

What Do We Really Know About the Cross-Sectional Relation Between Past and Expected Returns?

Mark Grinblatt, Tobias J. Moskowitz

Multihorizon temporal relationships between stock returns are complex due to confounding sources of return premia, microstructure effects, and changes in the relationship over various horizons. We...

Tax-Loss Trading and Wash Sales

Mark Grinblatt, Matti Keloharju

An analysis of trades in the Finnish stock market around the turn of the year shows that Finnish investors tend to realize losses more than gains towards the end of December. They also buy back the...

Information Aggregation, Security Design and Currency Swaps

Bhagwan Chowdhry, Mark Grinblatt, David Levine

A model of security design based on the principle of information aggregation and alignment is used to show that (i) firms needing to finance their operations should issue different securities to...

Debt Policy, Corporate Taxes, and Discount Rates

Mark Grinblatt, Jun Liu

This paper studies the valuation of assets with debt tax shields when debt policy is a general time-dependent function of the asset's unlevered cash flows, value, and history. In a continuous-time...

Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors

Mark Grinblatt, Matti Keloharju, Seppo Ikaheimo

This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his...

Performance Measurement without Benchmarks: An Examination of Mutual Fund Returns.

Grinblatt, Mark, Titman, Sheridan

This article introduces a new measure of portfolio performance and applies it to study the performance of a large sample of mutual funds. In contrast to previous studies of mutual fund performance,...

Mutual Fund Performance: An Analysis of Quarterly Portfolio Holdings.

Grinblatt, Mark, Titman, Sheridan D

This article employs the 1975-84 quarterly holdings of a sample of mutual funds to construct an estimate of their gross returns. This sample, which is not subject to survivorship bias, is used in...

Social Influence and Consumption: Evidence from the Automobile Purchases of Neighbors

Mark Grinblatt, Matti Keloharju, Seppo Ikäheimo

This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. Using a comprehensive data set with location coordinates at the individual consumer...