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Equity Valuation Cannot Outgrow the Economy Over the Long Run

Han, JC - 2016

Macroeconomic Theory and historical evidence suggest that bond prices help cause long-run convergence between stock …

Persistent link: https://www.econbiz.de/10012991589

External Growth and the Cross Section of Stock Returns

Li, Hongtao - 2017

Prior research finds expected returns decrease in firm-level total asset growth. This study shows that external growth, measured as asset growth raised from capital markets, has stronger power than total asset growth predicting the cross section of average returns. External growth subsumes the...

Persistent link: https://www.econbiz.de/10012970654

Expected Investment Growth and the Cross Section of Stock Returns

Li, Jun - 2018

distress risk, especially at short-run horizons up to one year. Detailed comparisons with traditional distress risk measures …

Persistent link: https://www.econbiz.de/10012935108

Implied Growth Horizons and the Cost of Equity

Mangelmans, Job - 2016

We introduce a straightforward method to estimate the implied cost of equity, allowing growth horizons to fluctuate both cross-sectionally and through time. Our results show substantial dispersion of implied growth horizons in cross-sections and time-series for US firms in the years 1988-2013....

Persistent link: https://www.econbiz.de/10012992949

Which is better : value strategy or growth strategy?

Park, Keehwan; Jung, Mookwon; Fang, Zhongzheng - In: Global business and finance review 27 (2022) 1, pp. 83-94

and risk in a unifying framework to explain the value and growth spread in the stock market. The conditional CAPM is a … equation, this paper derives the relationship among return, profit growth, and risk. We use three different risk metrics … proposed by Park and Fang (2021). We regress the value minus growth return on profit growth and risk variables to determine …

Persistent link: https://www.econbiz.de/10013197422

Heterogeneous Households under Uncertainty

Veronesi, Pietro - 2019

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … display a higher CAPM beta; and (d) households' portfolios change qualitatively. A log-utility investor for instance borrows …

Persistent link: https://www.econbiz.de/10012894596