References (35)



Do Cash Flows of Growth Stocks Really Grow Faster?

Huafeng (Jason) Chen

Texas A&M University

September 18, 2014

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.

Number of Pages in PDF File: 61

JEL Classification: G12

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Date posted: August 3, 2011 ; Last revised: September 19, 2014

Suggested Citation

Chen, Huafeng (Jason), Do Cash Flows of Growth Stocks Really Grow Faster? (September 18, 2014). Available at SSRN: https://ssrn.com/abstract=1903904 or http://dx.doi.org/10.2139/ssrn.1903904

Contact Information

Huafeng (Jason) Chen (Contact Author)
Texas A&M University ( email )
430 Wehner
College Station, TX 77843-4218
United States

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References:  35