This study explores the recent performance of growth and value stocks by using the data of\nthe Russell-Nomura Japan value and growth indices. This research is significantly important\nin order to judge the effectiveness of investment management and strategy in the recent\nJapanese equity markets. The recent full sample period under our analyses is from January 4,\n2010 to March 20, 2014. Our investigations as to the value spreads, growth spreads, and\nvalue-growth spreads in Japan derive the following evidence. First, (1) in the recent Japanese\nstock markets, the value spreads over Tokyo Stock Price Index (TOPIX) are statistically\nsignificantly positive in all six Russell-Nomura Japan value indices. Second, (2) in the recent\nstock markets in Japan, the growth spreads over TOPIX are also statistically significantly\npositive in all six Russell-Nomura Japan growth indices. Third, (3) in our above full sample\nperiod, growth style indices generally outperform the value style indices, and in particular,\nafter the inauguration of the new Abe cabinet in December 2012, smaller-size growth stock\nindices strongly outperform the same size category value indices.
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