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Article
Asset Growth and Stock Returns: Evidence from Asian Financial Markets
Pacific-Basin Finance Journal
  • Tong Yao, University of Iowa
  • Tong Yu, University of Rhode Island
  • Ting Zhang, University of Dayton
  • Shaw Chen, University of Rhode Island
Document Type
Article
Publication Date
1-1-2011
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.
Inclusive pages
115–139
ISBN/ISSN
0927-538X
Comments

Permission documentation is on file.

Ting Zhang is also known as Jeffrey Zhang.

Publisher
Elsevier
Peer Reviewed
Yes
Citation Information
Tong Yao, Tong Yu, Ting Zhang and Shaw Chen. "Asset Growth and Stock Returns: Evidence from Asian Financial Markets" Pacific-Basin Finance Journal Vol. 19 Iss. 1 (2011)
Available at: http://works.bepress.com/ting-zhang/5/