PT  - JOURNAL ARTICLE
AU  - Daniel Folkinshteyn
AU  - Gulser Meric
AU  - Ilhan Meric
TI  - Value and Growth Stock Price Behavior during Stock Market Declines
AID  - 10.3905/joi.2017.26.4.041
DP  - 2017 Nov 30
TA  - The Journal of Investing
PG  - 41--52
VI  - 26
IP  - 4
4099  - https://pm-research.com/content/26/4/41.short
4100  - https://pm-research.com/content/26/4/41.full
AB  - Using data for five major stock market declines during the 1987–2008 period and controlling for beta, firm size, and industry group, this article provides evidence that value stocks are generally less sensitive to major stock market declines than growth stocks. Further analysis using hundreds of different significant market move events between 1980 and 2015 confirms the observation that value stocks tend to outperform both the market average and growth stocks during market declines. The implication for investment practitioners is that following a value strategy does not lead one to assume greater sensitivity to unfavorable market conditions.TOPICS: Fundamental equity analysis, analysis of individual factors/risk premia