There has been a long standing debate regarding the existence of a value growth anomaly in financial economic research Previous studies have shown that value stocks (i e , stocks with low price to book ratios) have higher returns than growth stocks (i e , stocks with high price to book ratios) in t...

Valueoriented investors 1 focus on the current price per share specifically the price of the stock i ...

There has been a long-standing debate regarding the existence of a value-growth anomaly in financial economic research.

Question:

There has been a long-standing debate regarding the existence of a "value-growth" anomaly in financial economic research. Previous studies have shown that value (i.e., with low price-to-book ratios) have higher returns than growth (i.e., with high price-to-book ratios) in the United States and markets around the world, even after adjusting for a market-wide risk factor. What are some possible explanations for why value might outperform growth on a risk-adjusted basis? Is this value-growth "anomaly" consistent with the existence of an efficient stock market?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...