Cai, CX, Li, P orcid.org/0000-0002-1570-4006 and Zhang, Q (2019) Overreaction to growth opportunities: An explanation of the asset growth anomaly. European Financial Management, 25 (4). pp. 747-776. ISSN 1354-7798
Abstract
The negative relation between asset growth and subsequent stock returns is known as the asset growth anomaly. We propose that overreaction to growth opportunities is the source of the asset growth anomaly. This suggests that growth firms as opposed to mature firms, and firms with longer series of asset growth should experience a stronger asset growth anomaly. Our evidence supports these predictions.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 John Wiley & Sons, Ltd. This is the peer reviewed version of the following article: Cai, CX, Li, P, Zhang, Q. Overreaction to growth opportunities: An explanation of the asset growth anomaly. Eur Financ Manag. 2019; 25: 747– 776, which has been published in final form at https://doi.org/10.1111/eufm.12188. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | anomaly; asset growth; growth opportunities; overreaction; US market |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 22 Aug 2018 10:12 |
Last Modified: | 15 Jun 2020 00:39 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/eufm.12188 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:134827 |