Abstract

https://ssrn.com/abstract=1903904
 
 

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Do Cash Flows of Growth Stocks Really Grow Faster?


Huafeng (Jason) Chen


Tsinghua University - PBC School of Finance

November 10, 2016

Journal of Finance, Forthcoming

Abstract:     
Contrary to conventional wisdom, growth stocks (low book-to-market stocks) do not have substantially higher future cash-flow growth rates than value stocks, in both rebalanced and buy-and-hold portfolios. The efficiency growth, survivorship and look-back biases, and rebalancing effect help explain the results. This finding suggests that duration alone is unlikely to explain the value premium.

The Internet Appendix for this paper may be found at http://ssrn.com/abstract=2868277.

Number of Pages in PDF File: 60

JEL Classification: G12


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Date posted: August 3, 2011 ; Last revised: November 13, 2016

Suggested Citation

Chen, Huafeng (Jason), Do Cash Flows of Growth Stocks Really Grow Faster? (November 10, 2016). Journal of Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1903904 or http://dx.doi.org/10.2139/ssrn.1903904

Contact Information

Huafeng (Jason) Chen (Contact Author)
Tsinghua University - PBC School of Finance ( email )
No. 43, Chengdu Road
Haidian District
Beijing 100083
China
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