(2014) 'Dynamic capital structure and political patronage : the case of Malaysia.', International review of nancial analysis., 31 . pp. 117-128. Further information on publisher's website:http://dx.doi.org/10.1016/j.irfa.2013.11.004Publisher's copyright statement: NOTICE: this is the author's version of a work that was accepted for publication in International Review of Financial Analysis. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reected in this document. Changes may have been made to this work since it was submitted for publication. A denitive version was subsequently published in International Review of Financial Analysis, 31, January 2014, 10.1016/j.irfa.2013.11.004.
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(2014) 'Rationalizing the value premium in emerging markets.', Journal of international nancial markets, institutions and money., 29 . pp. 51-70. Further information on publisher's website:http://dx.doi.org/10.1016/j.int n.2013.11.005Publisher's copyright statement: NOTICE: this is the author's version of a work that was accepted for publication in Journal of International Financial Markets, Institutions and Money. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be re ected in this document. Changes may have been made to this work since it was submitted for publication.
Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-pro t purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details.
Rationalizing the Value Premium in Emerging MarketsAbstract: We reconfirm the presence of value premium in emerging markets. Using the Brazil-Turkey-India-China (BTIC) grouping during a period of substantial economic growth and stock market development, we attribute the premium to the investment patterns of glamour firms. We conjecture based on empirical evidence that glamour firms hoard cash, which delays undertaking of growth options, especially in poor economic conditions. Whilst this helps to mitigate business risk, it lowers market valuations and drives down expected returns. Our evidence supports arguments that the value premium is explained by economic fundamentals rather than a risk factor that is common to all firms.JEL Classifications: G110 (Portfolio Choice; Investment Decisions), G120 (Asset Pricing).
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