Ranking Investment Styles Based on Financial Asset Growth with Emphasis on the Business Cycle
Keywords:
Growth of the price of financial assets, Business cycle, Momentum investment, Investment styleAbstract
Objective: This study aims to analyze the impact of growth, value, quality, and momentum investment styles on firms’ financial asset growth while considering the mediating role of the business cycle.
Methodology: This research employed a mixed qualitative–quantitative design. In the qualitative phase, a systematic review of theoretical and empirical studies led to the extraction of 37 relevant indicators related to investment styles, business cycle conditions, and financial asset growth. These indicators were screened through a one-round Fuzzy Delphi process with financial experts, resulting in the retention of 33 validated criteria for modeling. Subsequently, causal relationships among variables were examined using the DEMATEL technique based on expert panel judgments. Quantitative data were collected using a structured Likert-scale questionnaire. Instrument face validity was confirmed by experts, and construct reliability was assessed through Cronbach’s alpha coefficients, all of which met acceptable standards.
Findings: The findings reveal that all four investment styles exert significant effects on firms’ financial asset growth, and the business cycle plays a substantial mediating role in this relationship. Among the investment styles, momentum investment demonstrated the strongest causal influence on asset growth, while growth, value, and quality styles also showed positive and statistically significant impacts. The final causal structure indicates that investment styles act as driving variables, whereas financial asset growth and the business cycle function as outcome variables in the model.
Conclusion: The results confirm that aligning investment strategies with prevailing business cycle conditions significantly enhances corporate financial asset growth and improves the effectiveness of investment decision-making.
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Copyright (c) 2026 Abdolreza Jaberi, Mohsen Hashemi Gohar, Mohsen Hamidian, Hamidreza Vakilifard (Author)
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