Poterba, James M., and Lawrence H. Summers, 1988, Mean reversion in stock re-
turns: Evidence and implications, Journal of Financial Economics22, 27–59.
Rehfeld, Barry, 1996, Mutual funds: What goes up, might go up more, New York
Times, February 25.
Ross, Stephen A., 1976, The arbitrage theory of capital asset pricing, Journal of
Economic Theory13, 341–60.
Rouwenhorst, K. Geert, 1998a, International momentum strategies, Yale University
working paper, forthcoming in Journal of Finance.
———, 1998b, Local return factors and turnover in emerging stock markets, Yale
University Working Paper.
Scharfstein, David S., and Jeremy C. Stein, 1990, Herd behavior and investment,
American Economic Review80, 465–79.
Sharpe, William F., 1964, Capital Asset Prices: A theory of market equilibrium
under conditions of risk, Journal of Finance19, 425–42.
Spiess, D. Katherine, and John Affleck-Graves, 1995, Underperformance in long-
run stock returns following seasoned equity offerings, Journal of Financial Eco-
nomics38, 241–67.
Stein, Jeremy C., 1987, Informational externalities and welfare-reducing specula-
tion, Journal of Political Economy95, 1123–45.
Womack, Kent L., 1996, Do brokerage analysts’ recommendations have investment
value?, Journal of Finance51, 137–68.
540 HONG AND STEIN