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Value versus Growth: The International Evidence
Article first published online: 17 DEC 2002
DOI: 10.1111/0022-1082.00080
The American Finance Association 1998
1540-6261/asset/cover.gif?v=1&s=5192ce61b1e4bde927ebc2df55b44b4da55ef137 "The Journal of Finance")
Additional Information
How to Cite
Fama, E. F. and French, K. R. (1998), Value versus Growth: The International Evidence. The Journal of Finance, 53: 1975–1999. doi: 10.1111/0022-1082.00080
Publication History
- Issue published online: 17 DEC 2002
- Article first published online: 17 DEC 2002
- Abstract
- Cited By
Value stocks have higher returns than growth stocks in markets around the world. For the period 1975 through 1995, the difference between the average returns on global portfolios of high and low book-to-market stocks is 7.68 percent per year, and value stocks outperform growth stocks in twelve of thirteen major markets. An international capital asset pricing model cannot explain the value premium, but a two-factor model that includes a risk factor for relative distress captures the value premium in international returns.