Profitability premium in China stock markets.

• Main Authors: He, Jiaxin., Li, Jing., Zhao, Shuohan.
• Other Authors: Chang Xin
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51574
• Institution: Nanyang Technological University

This paper aims to test the robustness of profitability strategies in generating incremental returns to value strategies in China stock markets. Our results show that the book-to-market ratio has very strong power in predicting stock returns, while profitability, measured by gross profits-to-assets...