Volume 6, No. 1, April 2007

 

Industry Momentum at the End of the 20th Century
Christos I. Giannikos
Zicklin School of Business, Baruch College, The City University of New York, U.S.A.
Xiuqing Ji
Zicklin School of Business, Baruch College, The City University of New York, U.S.A.
Abstract
Previous studies are conflicting as to whether industry momentum can explain stock momentum. We revisit this issue using a large dataset covering the US and 37 international countries. The results indicate that industry momentum earns significant profits worldwide and the profits are larger in January than in non-January months. Furthermore, analyzing portfolios generated from two-way sort provides evidence that industry and individual stock momentum are independent of each other.
Key words: stock momentum; industry momentum; profitability; independence
JEL classification: G11; G12; G15

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