This study examines how competition affects the profitability of mutual funds' trading on the post earnings announcement drift (PEAD). Our results show that while the average fund actively pursuing this strategy does not generate significant outperformance, funds that manage to avoid competition...

Mutual funds experiencing large outflows (inflows) tend to decrease (expand) existing positions, creating downward (upward) price pressure in the stocks held in common by them (Coval and Stafford 2007). This study shows that corporate insiders exploit the resulting mispricing by buying (selling)...

Mutual funds experiencing large outflows (inflows) tend to decrease (expand) existing positions, creating downward (upward) price pressure in the stocks held in common by them (Coval and Stafford 2007). This study shows that corporate insiders exploit the resulting mispricing by buying (selling)...

Mutual funds experiencing large outflows (inflows) tend to decrease (expand) their positions, creating downward (upward) price pressure in the stocks held in common by them (Coval and Stafford [2007]). This study shows that corporate insiders exploit the resulting mispricing by buying (selling)...