1. The Wal-Mart effect on the securities market
- Author
-
Stunda, Ronald A.
- Subjects
Wal-Mart Stores Inc. -- Securities ,Discount stores -- Securities ,Stock splitting -- Forecasts and trends ,Company securities ,Market trend/market analysis ,Business - Abstract
In the history of retail sales, no corporation has had as profound an impact on consumer spending across the United States as has Wal-Mart. In 2006, Charles Fishman wrote the eye-opening book, 'The Wal-Mart Effect.' This book describes how Wal-Mart has changed the landscape in retail trade along with both good and bad effects brought about by its rise to the powerful position it now commands. Mr. Fishman's book stops short in analyzing the impact Wal-Mart has had in the securities market. This research tests whether or not there is a 'Wal-Mart Effect' in the securities market. Research from the most recent four decades among firms in retail trade indicates that Wal-Mart does have a distinct advantage over its competitors when it comes to wealth generation and its link to security prices. This finding has practical implications on patterns of future investment among current and future security investors., INTRODUCTION As far back as the original Ball and Brown (1968) study, there have been a multitude of studies that empirically link unexpected earnings with security prices. What makes it [...]
- Published
- 2009