Industry Concentration and Average Stock Returns

By Kewei Hou, David T. Robinson. 2006

857 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d31ffbd6e2adbeeb2a3c76cdabc48eba036a33de

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Real Asset Illiquidity and the Cost of Capital (2014, background): “4Hou and Robinson (2006) empirically show that the stocks of firms operating in more competitive industries earn higher average returns and attribute this to their higher default risk. 5Smaller stocks are arguably more risky due to their higher distress risk (e.g., Chan and Chen (1991)), and the emp”
Does Corporate Governance Matter in Competitive Industries (2010, neutral): “The idea behind using asset-based HHIs is that sales can be rather volatile, with the effect that changes in the HHI may overstate actual changes in industry concentration (Hou and Robinson, 2006).”
The Limitations of Industry Concentration Measures Constructed with Compustat Data: Implications for Finance Research (2009, neutral): “These studies examine issues related to asset pricing (Hou and Robinson 2006), informed trading (Tookes 2008), idiosyncratic stock return volatility (Gaspar and Massa 2006), mergers and acquisitions (Song and Walkling 2000; Fee and Thomas 2004; Shahrur 2005), corporate governance (DeFond and Park…”
Bubbles for Fama (2019, background): “…which an industry experienced value-weighted returns of 100% or more in the past two years, in both raw and net of market 3 See Grinblatt and Moskowitz (1999), Asness, Porter and Stevens (2000), Hou and Robinson (2006), Hong, Torous, and Valkanov (2007), Greenwood and Hanson (2012), among others.”
How a Firm's Competitive Environment and Digital Strategic Posture Influence Digital Business Strategy (2013, background): “Herfindahl-Hirschman Index (HHI): HHI measures industry concentration, following Hou and Robinson (2006).”
Customer-Base Concentration: Implications for Firm Performance and Capital Markets (2012, neutral): “In contrast to Hou and Robinson (2006), however, I do not find evidence that firms in industries with less product market competition earn significantly lower future stock returns.”
Information Technology and Firm Profitability: Mechanisms and Empirical Evidence (2012, methodology): “Herfindahl Measure of industry concentration, following the procedure described in Hou and Robinson (2006).”
Ready, AIM, Acquire: Impression Offsetting and Acquisitions (2015, methodology): “Q:16_The in-text citation "Hou and Robinson (2006)" is not in the reference list.”
Government Spending, Political Cycles and the Cross Section of Stock Returns (2013, positive): “Following Hou and Robinson (2006), V/A is the ratio of market value of assets (market equity + total assets- book equity) to book assets.”