Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Investing

The Journal of Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Industry Concentration and the Cross Section of Expected Stock Returns: A Global Perspective

Edward N.W. Aw, Christopher R. Dornick, John Q. Jiang and Gregory Y. Sivin
The Journal of Investing Spring 2018, 27 (1) 43-51; DOI: https://doi.org/10.3905/joi.2018.27.1.043
Edward N.W. Aw
is head of quantitative strategies at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Christopher R. Dornick
is a quantitative analyst at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
John Q. Jiang
is a senior quantitative analyst at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Gregory Y. Sivin
is a senior quantitative analyst at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 

Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

Under economic theory, firms operating under monopolistic or oligopolistic competition are more profitable and can be expected to deliver higher returns to their shareholders. As such, industry concentration should have a positive relationship with the cross-section of stock returns. Studies by Hou and Robinson on the U.S. market; Hashem and Su on the U.K. market; and Gallagher, Ignatieva, and McCulloch on the Australian market did not reach consensus. The U.S. and U.K. studies found the relationship to be negative, whereas the Australian study showed evidence of a positive relationship. Motivated by this lack of consensus across markets, the authors re-examined this relationship from a global perspective. We find evidence that highly concentrated industries, on average, are more profitable and achieve higher expected returns even after controlling for size, book-to-market, and momentum.

TOPICS: Security analysis and valuation, analysis of individual factors/risk premia, developed

  • © 2018 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Investing: 27 (1)
The Journal of Investing
Vol. 27, Issue 1
Spring 2018
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Industry Concentration and the Cross Section of Expected Stock Returns: A Global Perspective
(Your Name) has sent you a message from The Journal of Investing
(Your Name) thought you would like to see the The Journal of Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Industry Concentration and the Cross Section of Expected Stock Returns: A Global Perspective
Edward N.W. Aw, Christopher R. Dornick, John Q. Jiang, Gregory Y. Sivin
The Journal of Investing Feb 2018, 27 (1) 43-51; DOI: 10.3905/joi.2018.27.1.043

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Industry Concentration and the Cross Section of Expected Stock Returns: A Global Perspective
Edward N.W. Aw, Christopher R. Dornick, John Q. Jiang, Gregory Y. Sivin
The Journal of Investing Feb 2018, 27 (1) 43-51; DOI: 10.3905/joi.2018.27.1.043
del.icio.us logo Digg logo Reddit logo Twitter logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • DATA
    • RESEARCH AND DESIGN
    • EMPIRICAL RESULTS
    • CONCLUSION
    • APPENDIX
    • ENDNOTE
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2022 Pageant Media Ltd | All Rights Reserved | ISSN: 1068-0896 | E-ISSN: 2168-8613

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy