TRADING STRATEGY AND SELLING GENERAL AND ADMINISTRATIVE EXPENSE

Peer reviewed: 
No, item is not peer reviewed.
Scholarly level: 
Graduate student (Masters)
Date created: 
2019-12
Keywords: 
Selling General and Administrative Expense
Governance
Trading Strategy
Abnormal Return
Abstract: 

This paper studies the relationship between selling, general and administrative expense(SG&A) of North American public companies and their stock performance. We introduce a measure of corporate governance based on the ratio of SG&A cost over total revenue and find a casual negative relationship between SG&A ratio and stock return. Additionally, we create a long-short trading strategy based on the SG&A ratio.

Description: 

MSc in Finance Project-Simon Fraser University.

Language: 
English
Document type: 
Graduating extended essay / Research project
Rights: 
Copyright remains with the author.
File(s): 
Senior supervisor: 
Dr. Amir Rubin
Department: 
Beedie School of Business-Segal Graduate School
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