Do Better Informed Investors Always Do Better? A Buyback Puzzle

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dc.contributor.authorBoyle G
dc.contributor.authorWard G
dc.date.accessioned2019-08-30T01:41:13Z
dc.date.available2019-08-30T01:41:13Z
dc.date.issued2018en
dc.date.updated2019-07-01T08:54:38Z
dc.description.abstract© 2018 Western Economic Association International We explore the value of private investment information using data from a singular source: auctions of yearling racehorses. Horse breeders possess superior information about their own horses and have strong financial incentives to buy the best of these back at auction. However, those they repurchase subsequently perform significantly worse on average, earning 30% less at the racetrack than horses purchased by outsiders. Moreover, this underperformance is concentrated in male horses, despite these being purchased exclusively for racing purposes. These puzzling findings cannot be explained by differences in horse risk or breeder abilities, or by nonfinancial objectives, or by behavioral or selection biases. (JEL G02, G11, G14, L83, D44).en
dc.identifier.citationBoyle G, Ward G (2018). Do Better Informed Investors Always Do Better? A Buyback Puzzle. Economic Inquiry. 56(4). 2137-2157.en
dc.identifier.doihttps://doi.org/10.1111/ecin.12688
dc.identifier.issn0095-2583
dc.identifier.issn1465-7295
dc.identifier.urihttp://hdl.handle.net/10092/17026
dc.languageEnglish
dc.language.isoen
dc.publisherWileyen
dc.subjectinformationen
dc.subjectauctionsen
dc.subjectracehorsesen
dc.subjectbuybacksen
dc.subject.anzsrcFields of Research::35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350208 - Investment and risk managementen
dc.titleDo Better Informed Investors Always Do Better? A Buyback Puzzleen
dc.typeJournal Articleen
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