%0 Journal Article
%T On Value Premium, Part II: The Explanations
%A Chi F. Ling
%A Simon G. M. Koo
%J Journal of Mathematical Finance
%P 66-74
%@ 2162-2442
%D 2012
%I Scientific Research Publishing
%R 10.4236/jmf.2012.21008
%X Much academic work has been done to prove that value premium exists. The center of debate however, lies on the reason for its existence. This paper will be a survey on different explanations to the existence of value premium which includes risk premium for value stocks, judgmental bias and agency costs, data mining, survivorship bias and company size¡¯s premium. Among all, judgmental bias and agency costs comes out to be the one suffered from least counter-arguments.
%K Value Investing
%K Value Premium
%K Arbitrage
%K Value Stocks
%K Glamour Stocks
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=17598