Business, Management and Accounting
3 years ago

House price appreciation impacts stock performance, affecting value-growth premium.

SSRN Electronic Journal
Firm Location and the Value-Growth Premium
Brent W. Ambrose, Yifan Chen, Timothy T. Simin

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

New research reveals why value investing may be losing its edge

Asset Pricing
Corporate Governance
Value-based Management
Economics, Econometrics and Finance
4 years ago

Value stocks riskier than growth, challenging traditional investment strategies.

Asset Pricing
Value-based Management
Option Pricing
3 views
Economics, Econometrics and Finance
7 years ago

New Asset Pricing Model Boosts Returns and Reduces Investment Risks.

Asset Pricing
Value-based Management
Earnings Management
2 views

The study looked at why some types of companies do better in certain areas. They found that in places where house prices have gone up a lot, companies that are considered good deals (value firms) tend to do better compared to fast-growing companies (growth firms). This connection between house prices and company performance supports the idea that investing in value firms can be a good strategy. The study also showed that high house prices can hurt growth firms, but not help value firms. This relationship between house prices and company performance was still strong even after considering other reasons why some companies do better than others.