The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Industry Concentration and Average Stock Returns
Open accessAbstract
Firms in more concentrated industries earn lower returns, even after controlling for size, book‐to‐market, momentum, and other return determinants. Explanations based on chance, measurement error, capital structure, and persistent in‐sample cash flow shocks do not explain this finding. Drawing on work in industrial organization, we posit that either barriers to entry in highly concentrated industries insulate firms from undiversifiable distress risk, or firms in highly concentrated industries are less risky because they engage in less innovation, and thereby command lower expected returns. Additional time‐series tests support these risk‐based interpretations.
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Citations
Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
On Persistence in Mutual Fund Performance
Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
Cited by
… and the Cross-Section of Expected Returns
Harvey, C. R., Liu, Y., & Zhu, H. (2016) · Review of Financial Studies · doi:10.1093/rfs/hhv059 · Cited by 2,119
Industry Information Diffusion and the Lead-lag Effect in Stock Returns
Hou, K. (2007) · Review of Financial Studies · doi:10.1093/revfin/hhm003 · Cited by 601
Self-citationThe implied cost of capital: A new approach
Hou, K., van Dijk, M. A., & Zhang, Y. (2012) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2011.12.001 · Cited by 561
Self-citationThe supraview of return predictive signals
Green, J., Hand, J. R. M., & Zhang, X. F. (2013) · Review of Accounting Studies · doi:10.1007/s11142-013-9231-1 · Cited by 219
Do Machine Learning Models Need to Be Sector Experts?
Hanauer, M. X., Soebhag, A., Stam, M., & Hoogteijling, T. (2025) · doi:10.2139/ssrn.5224253 · Cited by 2
Metadata
- Authors
- HOU, K., & ROBINSON, D. T.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2006-08
- Volume
- 61
- Issue
- 4
- Pages
- 1927-1956
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2163759112
- Cited by
- 906
- References
- 2
- FWCI
- 6.07
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
