The Real Asset Anomaly: A Critical Long View of Capital Markets and Institutions from Realized Returns of Corporate Assets in Over 50 Years

James S. Ang & Gregory Leo Nagel

Research in Finance2013https://doi.org/10.1108/s0196-3821(2013)0000029006book-chapter
ABDC C
Weight
0.34

What the paper says

Abstract Our chapter raises serious questions about the long-term efficiency of stock prices in relation to the realized returns of the underlying corporate real assets. In our large-scale calculations that cover horizons of 10, 20, 30, 40, and 50 years, returns on corporate real assets suffer a long-term decline, and have been below the yields of 10-year Treasury bonds since 1973. Real assets that received more external financing from capital markets and institutions actually report even lower realized long-term returns. The decline in realized returns cannot be attributed to declining risks as the volatilities of realized returns have been increasing over time. These surprising results may stimulate fresh debate on the roles and long-term performance of capital markets and institutions.

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https://doi.org/https://doi.org/10.1108/s0196-3821(2013)0000029006

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@article{james2013,
  title        = {{The Real Asset Anomaly: A Critical Long View of Capital Markets and Institutions from Realized Returns of Corporate Assets in Over 50 Years}},
  author       = {James S. Ang & Gregory Leo Nagel},
  journal      = {Research in Finance},
  year         = {2013},
  doi          = {https://doi.org/https://doi.org/10.1108/s0196-3821(2013)0000029006},
}

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Evidence weight

0.34

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.