The Effectiveness of Fundamental Analysis on Value Stocks – an Analysis of Piotroski’s F-score
In an efficient market, assets reflect all available information. Hence, investors cannot earn abnormal returns by conducting fundamental analysis since all financial data is impounded in the asset. The only way for an investor to earn higher returns is by incurring increased risk. However, a growing body of evidence appears to contradict market efficiency and common notion of risk compensation. P
