Publication Type

Master Thesis

Version

publishedVersion

Publication Date

2010

Abstract

Using a measure of cashflow risk derived from analyst forecasts, I find that cashflow risk offers a partial explanation for the value – growth anomaly. In particular, the lowest asset growth portfolio has a higher earnings beta than the highest asset growth portfolio. Approximately cashflow risk measured by earnings beta carries a significant positive risk premium of 1.24% with a t-value of 3.51.

Keywords

analyst earnings, earnings beta, expected cashflow, growth anomaly

Degree Awarded

MSc in Finance

Discipline

Finance and Financial Management | Portfolio and Security Analysis

Supervisor(s)

WARACHKA, Mitchell Craig

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

Share

COinS