High asset growth linked to lower stock returns in global markets.
The study looked at how asset growth affects stock returns in international markets from 2016 to 2020. They found that companies with higher asset growth tend to have lower stock returns, similar to what happens in the United States. This connection is likely due to smart investing choices rather than market timing or other factors. Factors like accounting quality can influence this relationship. Overall, the evidence supports the idea that asset growth can impact stock returns in international markets.