Asset Growth and Future Stock Returns:International Evidence

摘要

The authors found strong return predictive power for measures related to asset growth in the MSCI World Universe. The predictive power applies to abnormal returns for up to four years after the initial measurement period, is particularly strong for two-year total asset growth rates, and is robust to size and book-to-market adjustments. It is also robust for various sample periods, various geographic regions, and both large- and small-cap stocks.