Price-to-Earning Growth Ratio and Value Vs. Growth Based Strategies: Some European Evidences
American University of Beirut - School of Business
Bradford University School of Management
While recent studies have concentrated on why value outperforms growth, this paper verifies whether over performance level has changed over the recent period within the euro-zone, and whether these strategies are sensitive to earnings growth level, country or industry factors. Results show that a value strategy with a high earnings growth rate over performance the growth strategies for the euro zone. The strategy of selling short shares with a price to earning growth (PEG) ratio higher than one and buying shares with a PEG ratio less than one out performs other strategies.
Number of Pages in PDF File: 16working papers series
Date posted: February 4, 2004
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