Value versus hyper growth and expected stock returns: In memory of Simon Benninga

This essay expands the theory on value versus growth stocks by adding another component to growth stocks. The new component is the substantial size growth (sg) (market capitalization growth). As shown in the financial literature, growth stock returns are lower than value stock returns. When sg is exploding, the growth stock returns are even substantially lower. This new variable is highly significant both statistically and economically.