Asset Growth and the Cross-Section of Stock Returns

@inproceedings{Cooper2008AssetGA,
  title={Asset Growth and the Cross-Section of Stock Returns},
  author={Michael J Cooper and Huseyin Gulen and Michael J. Schill},
  year={2008}
}
We test for firm-level asset investment effects in returns by examining the crosssectional relation between firm asset growth and subsequent stock returns. Asset growth rates are strong predictors of future abnormal returns. Asset growth retains its forecasting ability even on large capitalization stocks. When we compare asset growth rates with the previously documented determinants of the cross-section of returns (i.e., book-to-market ratios, firm capitalization, lagged returns, accruals, and… CONTINUE READING
Highly Influential
This paper has highly influenced 15 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS

References

Publications referenced by this paper.
Showing 1-10 of 35 references

Do investors overvalue

1651 Hirshleifer, David, Kewei Hou, Siew Hong Teoh, Yinglei Zhang
2004
View 7 Excerpts
Highly Influenced

Dissecting anomalies

Fama, Eugene, Kenneth French
Journal of Finance • 2008

Long-run underperformance following external finance issues?, Working paper, University of Iowa

Billet, Matthew, Mark Flannery, Jon Garfinkel
2007

Risk , Return , and Equilibrium : Empirical Tests

Eugene F. Fama, James D. MacBeth
2007

Market reaction to tangible and intangible information

Daniel, Kent, Sheridan Titman
Journal of Finance • 2006

Profitability, investment and average returns

Fama, Eugene, Kenneth French
Journal of Financial Economics • 2006

Regularities, Working paper, University of Michigan

Michigan. Liu, Laura, Toni Whited, Lu Zhang
Journal of Finance • 2006

Firm age and fluctuations in idiosyncratic risk

Fink, Jason, Kristen Fink, Gustavo Grullon, James Weston
Working paper, • 2005
View 1 Excerpt

The role of growth in long-term investment returns

Broussard, John Paul, David Michayluk, Walter Neely
Journal of Applied Business Research • 2005

Similar Papers

Loading similar papers…