Value versus growth investing: Why do different investors have different styles?

• 成果类型: Article
• 署名作者: Cronqvist, Henrik; Siegel, Stephan; Yu, Frank
• 署名单位: China Europe International Business School; University of Washington; University of Washington Seattle
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.04.006
• 发表日期: 2015
• 页码: 333-349
• 关键词: INVESTMENT BEHAVIOR; portfolio choice; Value investing; Growth investing

摘要

We find that several factors explain an individual investor's style, i.e., the value versus growth orientation of the investor's stock portfolio. First, we find that an investor's style has a biological basis and is partially ingrained in an investor from birth. Second, we show that an investor's hedging demands as well as behavioral biases explain investment style. Finally, an investor's style is explained by life course theory in that experiences, both earlier and later in life, are related to investment style. Investors with adverse macroeconomic experiences (e.g., growing up during the Great Depression or entering the labor market during an economic recession) or who grow up in a lower socioeconomic status rearing environment have a stronger value orientation several decades later. Our research contributes a new perspective to the long-standing value and growth debate in finance. (C) 2015 Elsevier B.V. All rights reserved.