Title

Asset Growth and Stock Returns: Evidence from Asian Financial Markets

Document Type

Article

Publication Date

1-2011

Publication Source

Pacific-Basin Finance Journal

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

Volume

19

Issue

1

Peer Reviewed

yes