Title

Market Share Growth and Stock Returns

Document Type

Article

Publication Date

10-31-2018

Publication Title

Accounting and Finance

Keywords

Stock market returns, Market anomalies, Market share growth

Disciplines

Business | Finance and Financial Management

Abstract

We find a negative relationship between market share growth and subsequent stock returns, three- and four-factor alphas. We report the potential explanatory
role of market share growth in explaining subsequent average monthly stock returns. High (Low) market share growth firms report good (poor) operating performance and positive (negative) SUEs in the quarter in which
market share growth is measured and investors overact to that good (bad) news. However, high (low) market share growth firms experience decrease (increase) in operating performance and SUEs in the subsequent quarters
resulting in corrections in investors' expectations and subsequent lower (higher) stock returns.

DOI

10.1111/acfi.12300

Volume

58

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