Asset Growth and Stock Returns: Evidence from Asian Financial Markets
43 Pages
Posted: 30 Sep 2010
Last revised: 12 Oct 2010
University of Iowa - Henry B. Tippie College of Business
University of Cincinnati
University of Dayton - School of Business Administration
University of Rhode Island - College of Business Administration
Date Written: September 1, 2010
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.
Suggested Citation:
Suggested Citation
Yao, Tong and Yu, Tong and Zhang, Ting and Chen, Shaw, Asset Growth and Stock Returns: Evidence from Asian Financial Markets (September 1, 2010). Available at SSRN: https://ssrn.com/abstract=1683784 or http://dx.doi.org/10.2139/ssrn.1683784
