Concentration and stock returns: Australian evidence

Katja Ignatieva, David Gallagher

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review


We argue that not only the standard risk factors (size, book-to-market ratio) affect the average stock returns, but also the structure of the product market itself. We address the issue of competition on the Australian stock market, comparing it to the US stock market. In contrast o the US market, we find a significant evidence that companies operating in highly concentrated industries generate higher risk-adjusted returns than those operating in less concentrated (more competitive) industries. Regarding the standard risk factors, we find that average returns are positively related to the size of the company, and negatively related to book-to-market, which is the opposite to the US stock market as documented in previous studies.
Original languageEnglish
Title of host publicationInternational proceedings of economics development and research
EditorsJuan Su
Place of PublicationSingapore
PublisherInternational Association of Computer Science and Information Technology
Number of pages6
ISBN (Print)9789810886417
Publication statusPublished - 2011
EventInternational Conference on Economics, Business and Management - Manila, Philippines
Duration: 4 Dec 20105 Dec 2010


ConferenceInternational Conference on Economics, Business and Management
CityManila, Philippines


  • concentration
  • stock returns


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