Greek firms' asset growth predicts future stock returns, impacting investment strategies.
The study looked at how the growth of assets in Greek companies affects their future stock returns. They found that as Greek firms increase their total assets, their stock returns tend to decrease. This relationship remained significant even when considering other factors like market value and book-to-market ratio. By trading based on asset growth rates, investors could make positive returns by going long on firms with low growth and short on firms with high growth. This shows that asset growth can predict future returns for Greek listed companies.