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Sales order backlogs and momentum profits

  • Gu, Li
  • Huang, Dayong

Winner stocks have higher changes in sales order backlogs and a sales order backlog factor is significant in explaining various winner minus loser returns and often reduces the [alpha]s by big margins. We argue that this factor is a proxy for innovation in demand in the economy and it is likely to relate to expected growth risks and future business conditions.

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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 34 (2010)
Issue (Month): 7 (July)
Pages: 1564-1575

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Handle: RePEc:eee:jbfina:v:34:y:2010:i:7:p:1564-1575
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