'Asset Growth and Future Stock Returns: Inter-national Evidence': A Comment

摘要

Xi Li, Ying Becker, and Didier Rosenfeld (May/ June) highlighted a number of explanations for the asset growth effect, which they examined across international markets. Might it be possible to identify yet another explanation, using a corporate finance/agency perspective? Arguably, corporate managers can identify a series of future projects, some of which may be more attractive than others. Disciplined corporate managers will select