Industry concentration and stock returns in China A-share market

  • Dan Min*
  • , Li Yan Han
  • , Dong Hui Li
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Industry market structure impacts asset pricing of listed firms from risk and accountant surplus because of its effects on cash flows and profits of firms. We choose all Shanghai Stock Exchange and Shenzhen Stock Ex change-listed A-share securities from July 2001 to June 2005 in this paper, and explore the relationship between industry concentration and stock returns in Chinese capital market The results reveal that stock returns are significantly positively correlated with industry concentration even after controlling for size, book to marka and momentum, that is also to say firms in more concentrated industries earn more returns. Furthermore, the correlation between two aspects is not impacted by cash flow shocks, risk factors and macro economy. This conclusion derived from this paper is useful for the guidance of investment decision-making on capital market.

Original languageEnglish
Title of host publicationProceedings of 2007 International Conference on Management Science and Engineering, ICMSE'07 (14th)
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1754-1763
Number of pages10
ISBN (Print)9787883580805
DOIs
StatePublished - 2007
Event2007 International Conference on Management Science and Engineering, ICMSE'07 - Harbin, China
Duration: 20 Aug 200722 Aug 2007

Publication series

NameProceedings of 2007 International Conference on Management Science and Engineering, ICMSE'07 (14th)

Conference

Conference2007 International Conference on Management Science and Engineering, ICMSE'07
Country/TerritoryChina
CityHarbin
Period20/08/0722/08/07

Keywords

  • Cash flow
  • Entry barriers
  • Industry concentration
  • Risk factors

Fingerprint

Dive into the research topics of 'Industry concentration and stock returns in China A-share market'. Together they form a unique fingerprint.

Cite this