The impacts of emotional advertising on consumer purchase decisions - An empirical study in Ho Chi Minh city
Abstract
Profitability and value investing are two of the most common techniques applied in both academia and investment world. Many studies (e.g Novy-Marx,2013; Ball et al 2015,2016), have introduced several profitability measures and found inconsistent evidence for the measures with best stock returns predictability across developed countries. To provide more evidence, we investigate the returns predictability of the profitability measures proposed by prior studies in a new sample of four emerging markets of BRIC: Brazil, Russia, India and China; for the period 1994-2017. We first show that there is no single dominant profitability strategy for all the markets in BRIC through the univariate and duo sorting analysis. We also find that the combination of profitability measure GP/ME and value investing measure (BE/ME) using Z-score approach significantly improve the return predictability of profitability measure GP/ME.