TRADING STRATEGY AND SELLING GENERAL AND ADMINISTRATIVE EXPENSE

Date created
2019-12
Authors/Contributors
Author: Tu, Jennifer
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.
Document
Description
MSc in Finance Project-Simon Fraser University.
Copyright statement
Copyright is held by the author(s).
Scholarly level
Peer reviewed?
No
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