International Value and Growth Stock Returns

The returns obtained from portfolios of stocks with high price/book ratios ("growth" stocks) and those obtainedfrom portfolios of stocks with low price/book ratios ("value" stocks) were analyzed for six countries over the period from January 1981 through June 1992. Results suggest the existence of a sign/ifcant "value-growth factor" in each country. The returns on portfolios forned according to the valuegrowth factor difer far more from month to month than would be expected if the securities had been selected randomly.