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John Paul Broussard's, Jussi Mikkonen's, and Vesa Puttonen's article "Style Migration in Europe" Forthcoming in European Financial Management

John Paul Broussard's, Jussi Mikkonen's, and Vesa Puttonen's article "Style Migration in Europe" Forthcoming in European Financial Management

The paper complements the literature on style migration by examining value and size premiums throughout Europe. Information from more than 25 European markets indicates an average value premium of 9.58% per year. The primary determinants of the persistent value outperformance are: 1) value firms migrating to a neutral or growth portfolio, and 2) growth stocks migrating to neutral or value portfolios. The financial health metric F_SCORE helps uncover outperforming stocks ex ante, and provides preliminary evidence on the probability of migration, but only for small stocks.

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