Asset growth and stock returns in european equity markets: Implications of investment and accounting distortions

Artikis, Panagiotis G.; Diamantopoulou, Lydia; Papanastasopoulos, Georgios A.; Sorros, John

doi:10.1016/j.jcorpfin.2022.102193

Cited by 11 publications

(19 citation statements)

References 49 publications

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“…By showing that the asset growth effect is stronger in more developed markets, Titman et al (2013) support the q-theory and against the overinvestment hypothesis for the asset growth anomaly. Artikis et al (2022) provide an alternative explanation for the cross-country differences in the asset growth effect. They decompose asset growth into two components related to real investment growth and accounting distortions and/or reduced efficiency, respectively.…”

Section: National Cultures and The Asset Growthmentioning

confidence: 97%

“…In a recent study, Artikis et al . (2022) also examine the relation between asset growth and stock returns based on an international framework by using data from the European stock markets.…”

Section: Introductionmentioning

confidence: 94%

“…The first uniqueness of our study is to highlight the overinvestment hypothesis for the asset growth anomaly based on the notion that managers in more individualistic and low uncertainty-avoiding cultures have higher tendency to overinvest. The use of individualism in Artikis et al (2022), however, is motivated by Papanastasopoulos (2014), who argues that higher overconfidence and lower conservatism enable investors to react more completely to new firm-specific information. Our study is distinct from Artikis et al (2022) in that we emphasize the overinvestment behavior of managers while they focus on investors' reactions.…”

Section: National Cultures and The Asset Growthmentioning

confidence: 99%

“…The use of individualism in Artikis et al (2022), however, is motivated by Papanastasopoulos (2014), who argues that higher overconfidence and lower conservatism enable investors to react more completely to new firm-specific information. Our study is distinct from Artikis et al (2022) in that we emphasize the overinvestment behavior of managers while they focus on investors' reactions.…”

Section: National Cultures and The Asset Growthmentioning

confidence: 99%

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National cultures and the asset growth effect

Chou,

Ko,

Rhee

2023

JDQS

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National cultures significantly explain cross-country differences in the relation between asset growth and stock returns. Motivated by the notion that managers in individualistic and low uncertainty-avoiding cultures have a higher tendency to overinvest, this study aims to show that the negative relation between asset growth and stock returns is stronger in countries with such cultural features. Once the researchers control for cultural dimensions, proxies associated with the q-theory, limits-to-arbitrage, corporate governance, investor protection and accounting quality provide no incremental power for the relation between asset growth and stock returns across countries. Evidence of this study highlights the importance of the overinvestment hypothesis in explaining the asset growth anomaly around the world.

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Section: National Cultures and The Asset Growthmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 94%

Section: National Cultures and The Asset Growthmentioning

confidence: 99%

Section: National Cultures and The Asset Growthmentioning

confidence: 99%

See 2 more Smart Citations

National cultures and the asset growth effect

Chou,

Ko,

Rhee

2023

JDQS

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“…In an economic outlook, an investment is the purchase of goods that are not consumed today but are used in the future to generate wealth (Kilic et al, 2022). In finance, an investment is a financial asset bought with the idea that the asset will provide income further or will later be sold at a higher cost price for a profit (Artikis et al, 2022;Boasiako et al, 2022). Definition: Investment is a financial activity carried down with the objective of getting return.…”

Section: Introductionmentioning

confidence: 99%

Financial Literacy and Investment Behaviour of IT Professional With Reference To Bangalore City

Shaik¹,

Kethan²,

Jaggaiah3³

2022

ijjm

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IT sector plays a vital role in its contribution towards India’s GDP Savings and investments are imperative for fast-tracking economic growth and taking India to greater heights. The Purpose of this research is to understand the saving and investment behaviour of the IT professionals. There are various dimensions of savings and investment behaviour such as features of investment planning, determinants of investment preferences, IT Professionals have different mindset when they decide about investing in a particular avenue and they want his saving to be invested in most secure and liquid way. Though, the decision varies for every separate depending upon their risk aptitude. Their investment objective also differs from financial stability to additional income and so on. This paper attempts to find out the factors accountable for increased investing activities among young professionals. The current has studied the investment behaviour of IT investors by using a structured survey and this study inspects Behavioural Factors influencing towards Investment p among IT Professionals.

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