"Mad Money" Should Make Average Investors Mad

According to a research paper by three Northwestern University researchers, the CNBC show, Mad Money (hosted by Jim Cramer), gives out stock picking advice that should make the average investor boiling mad (and, conversely, the savvy arbitraguer, extremely happy). The following is an excerpt from the paper:

Taken together, our results suggest that the aggregate losers in our event study are the Mad Money viewers who decide to buy the recommended securities when the markets open the following day, and that the winners are the market makers and arbitraguers who sell the overpriced recommended stocks on day 1, as well as the traders who sell the recommended stocks on days 2 through 12.

The paper can be downloaded from SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=870498