@article {Yook75, author = {Ken C. Yook and George M. McCabe}, title = {MVA and the Cross-Section of Expected Stock Returns}, volume = {27}, number = {3}, pages = {75--87}, year = {2001}, doi = {10.3905/jpm.2001.319803}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The authors examine the cross{\textendash}section of expected stock returns between 1985 and 1994 and find a strong negative relationship between market value added per share (MVA) and average returns. When the joint effect of MVA, firm size, and the ratio of price{\textendash}to{\textendash}book value is examined, the explanatory power of size and the price{\textendash}to{\textendash}book value for the cross{\textendash}section of average returns is substantially diminished, but MVA is still strongly related to returns. These results suggest three possibilities: that MVA is serving as a proxy for a risk factor that affects equilibrium expected returns, that current poor performance will be reversed in the future as the mean{\textendash}reverting hypothesis suggests, or that low MVA firms are relatively underpriced.}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/27/3/75}, eprint = {https://jpm.pm-research.com/content/27/3/75.full.pdf}, journal = {The Journal of Portfolio Management} }