Is sustainable competitive advantage an advantage for stock investors?
| Autor: | Yi Liu, Tomas Mantecon |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance business.industry 05 social sciences Monetary economics Competitive advantage Growth stock 0502 economics and business Mean reversion Capital asset pricing model Profitability index Business health care economics and organizations 050203 business & management Stock (geology) |
| Zdroj: | The Quarterly Review of Economics and Finance. 63:299-314 |
| ISSN: | 1062-9769 |
| DOI: | 10.1016/j.qref.2016.04.007 |
| Popis: | Investing in stocks of companies with sustainable competitive advantage, the moat, does not earn higher raw returns. These companies tend to be larger, financially stronger, and have lower book-to-market ratios (growth stocks). After controlling for size, book-to-market ratio and other risk factors, sustainable competitive advantages is a positive factor affecting cross-section of stock returns. Firms with sustainable competitive advantage also seem to be shielded from mean reversion of higher profitability better than non-wide moat firms. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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