Title: Characteristics of companies with high-quality: Europe vs USA
Other Titles: Charakteristika von Unternehmen mit hoher Qualität: Europa vs USA
Language: English
Authors: Lopez Solis, Sergio Ricardo 
Qualification level: Diploma
Advisor: Aussenegg, Wolfgang 
Issue Date: 2021
Number of Pages: 80
Qualification level: Diploma
In the asset pricing literature, authors propose different quality variables that should characterize companies. Their results are aimed to represent the importance of quality on the stock performance. Mostly, the 3-factor model of Fama-French is used to control the impact of other variables such as market, size and value.This study asks whether the high-quality companies perform better that low-quality companies and looks for differences between Europe and the USA in regard to quality. For that purpose, stock returns and accounting data of European and American companies have been gathered. Then they have been sorted by their quality-values, and by using the 3-factor model the performance of low and high-quality companies have been compared.The results suggest that companies with high value of gross profit-to-assets, operating profitability and quality score tend to perform better than those with low values. Moreover, pattern differences between quality in Europe and the USA are observed when companies are sorted by enterprise-level operating profitability.
Keywords: Quality Stocks; Asset Pricing; Abnormal Returns
URI: https://doi.org/10.34726/hss.2021.91841
DOI: 10.34726/hss.2021.91841
Library ID: AC16257197
Organisation: E330 - Institut für Managementwissenschaften 
Publication Type: Thesis
Appears in Collections:Thesis

Files in this item:

Google ScholarTM


Items in reposiTUm are protected by copyright, with all rights reserved, unless otherwise indicated.