Impacts of Asset Utilization, Market Competition and Market Distance on Stock Returns

  • Jeanne-Claire Patin McNeese State University, Lake Charles, LA
  • Matiur Rahman McNeese State University, Lake Charles, LA
  • Muhammad Mustafa South Carolina State University, Orangeburg, SC
DOI: https://doi.org/10.31966/jabminternational.v28i1.825

Abstract

To empirically study the effects of asset utilization, market competition and market distance on stock returns of 1961 US public firms of different industry categories over 2001-2015. The heterogeneous panel data set consists of 23,532 (N= 1961*T= 15) observations. Pedroni’s panel co-integration, panel vector errorcorrection model (PVECM), panel dynamic OLS (PDOLS), and panel generalized method of moments (PGMM) are implemented. Both asset utilization and market competition have short-run and long-run positive effects on stock returns. But the effects of market distance are negative. The evidence for convergence toward the long-run equilibrium is very weak. Firms should be strategic to improve asset utilization, be more competitive and expand market distance to maximize stockholders’ wealth.

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Published
2021-04-30
How to Cite
PATIN, Jeanne-Claire; RAHMAN, Matiur; MUSTAFA, Muhammad. Impacts of Asset Utilization, Market Competition and Market Distance on Stock Returns. Journal of Accounting, Business and Management (JABM), [S.l.], v. 28, n. 1, p. 52-62, apr. 2021. ISSN 2622-2167. Available at: <https://journal.stie-mce.ac.id/index.php/jabminternational/article/view/825>. Date accessed: 15 jan. 2025. doi: https://doi.org/10.31966/jabminternational.v28i1.825.
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Issue
Vol 28 No 1 (2021): April
Section
Articles
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