The Asset Growth Effect: Insights from International Equity Markets
By Akiko Watanabe, Yan Xu, Tong Yao, Tong Yu. 2013
204 citations recorded by the source corpus.
Firms with higher asset growth rates subsequently experience lower stock returns in international equity markets, consistent with the U.S. evidence. This negative effect of asset growth on returns is stronger in more developed capital markets and markets where stocks are more efficiently priced, but is unrelated to country characteristics representing limits to arbitrage, investor protection, and accounting quality. The evidence suggests that the cross-sectional relation between asset growth and stock return is more likely due to an optimal investment effect than due to overinvestment, market timing, or other forms of mispricing.
Subfields: Accounting, Finance, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/5e515c94c4e972e85e37bc7adb4fe54f3a8c771a
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In Accounting
- Ali Saleh Ahmed Alarussi
- S. Alhaderi
- K. John Wei
- Feixue Xie
- Sheridan Titman
- Jarrad Harford
- Avanidhar Subrahmanyam
- Vahap Bülent Uysal
In Finance
- K. John Wei
- Feixue Xie
- Sheridan Titman
- Avanidhar Subrahmanyam
- Jarrad Harford
- Scott A. Richardson
- Xiaoji Lin
- Mikhail Simutin
In Strategy and Management
- Ali Saleh Ahmed Alarussi
- S. Alhaderi
- Feixue Xie
- Sheridan Titman
- Scott A. Richardson
- Jarrad Harford
- Xiaoji Lin
- Avanidhar Subrahmanyam
Citations in the corpus
- Market Development and the Asset Growth Effect: International Evidence (2013, result): “The statistics of our variables are comparable to those of variables of similar definitions used in studies by others (e.g., McLean, Pontiff, and Watanabe (2009), Chui et al. (2010), Fama and French (2012), Hou, Karolyi, and Kho (2011), and Watanabe et al. (2013)).”
- Factors affecting profitability in Malaysia (2018, background): “The Malaysian economy showed strong signs of recovery in 2010 from the global economic crisis (Datamonitor, 2010; Watanabe et al., 2011).”