Asset growth and stock returns: Evidence from Asian financial markets

Tong Yao; Tong Yu; Ting Zhang; Shaw Chen

doi:10.1016/j.pacfin.2010.09.004

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Asset growth and stock returns: Evidence from Asian financial markets

Journal article

Peer reviewed

Asset growth and stock returns: Evidence from Asian financial markets

Tong Yao, Tong Yu, Ting Zhang and Shaw Chen

Pacific-Basin finance journal, Vol.19(1), pp.115-139

2011

DOI: 10.1016/j.pacfin.2010.09.004

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https://digitalcommons.uri.edu/cba_facpubs/169View

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Abstract

This study examines the effect of corporate asset growth on stock returns using data on nine equity markets in Asia. For the period from 1981 to 2007, we find a pervasive negative relation between asset growth and subsequent stock returns. Such relation is weaker in markets where firms' asset growth rates are more homogeneous and persistent and in markets where firms rely more on bank financing for growth. On the other hand, corporate governance, investor protection, and legal origin do not influence the magnitude of the asset growth effect in Asian markets.

Asian financial markets

Asset growth

Market efficiency

Return predictability

Details

Title: Subtitle: Asset growth and stock returns: Evidence from Asian financial markets
Creators: Tong Yao - University of Iowa
Tong Yu - University of Rhode Island
Ting Zhang - University of Dayton
Shaw Chen - University of Rhode Island
Resource Type: Journal article
Publication Details: Pacific-Basin finance journal, Vol.19(1), pp.115-139
DOI: 10.1016/j.pacfin.2010.09.004
ISSN: 0927-538X
eISSN: 1879-0585
Publisher: Elsevier B.V
Language: English
Date published: 2011
Academic Unit: Finance
Record Identifier: 9984380513702771

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