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1 – 10 of over 12000
Article
Publication date: 1 March 2022

Ken-Yien Leong, Mohamed Ariff, Zarei Alireza and M. Ishaq Bhatti

The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most…

Abstract

Purpose

The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most commonly used theories which are then tested using 19-year banking-firm market data. The usefulness of these models demonstrates with promising results.

Design/methodology/approach

This paper conducts a multi-country study using the multi-model testing approach to evaluate validity of theories and forecast accuracy of banking firms. It employs four methodology models used in finance literature; (1) P/E multiples model, (2) accounting-information-based clean surplus model, (3) theoretical model based on Gordon and Shapiro (1956) method and (4) the Damodaran-Kottler Free Cash Flow or FCF theory based on discounting model.

Findings

The tests show that the four theories under tests have a significant fit with actual price formation. The explained variation ranges from 72 to 92%, so the explanatory power of the theories accounting for variations in bank prices over 19-year period is substantial. The models fit suggest that the P/E model has superior predictive power followed by the RIM, DDM and FCFE. These findings shed new lights on the relative performance of valuation models.

Research limitations/implications

The study is limited in terms of the sample period size for 1999–2019. The availability of essential financial data prior to 2000 is very limited, so one can understand interpretation of statistical results under certain assumptions.

Practical implications

The paper suggests that one-factor model is better than the two-factor model.

Originality/value

The work done in this paper is unpublished and original contribution to banking and finance literature and also not under consideration for publication in any other journal.

Details

International Journal of Managerial Finance, vol. 19 no. 2
Type: Research Article
ISSN: 1743-9132

Keywords

Book part
Publication date: 9 July 2010

Anna Rubtsova, Rich DeJordy, Mary Ann Glynn and Mayer Zald

In this article, we consider the evolution of the US stock market from the 1770s through the early 20th century. Adopting an institutional lens, we conceive of the stock market as…

Abstract

In this article, we consider the evolution of the US stock market from the 1770s through the early 20th century. Adopting an institutional lens, we conceive of the stock market as an institutional field constituted by socially constructed cultural logics and myths. We focus on the role of the US government as an actor embedded in the stock market field and sharing in the prevailing field logics. Tracking the dominant logics of the stock market field at different historical periods, we examine how these logics impacted government regulatory action upon the stock market, and how those government regulations affected the subsequent logics of the stock market field. Our research included both quantitative content analysis of articles in historical newspapers and qualitative historical analysis of multiple primary and secondary accounts of stock market problems and solutions across more than 150 years. We document how government regulatory action both reflects and shapes the logics of the stock market field.

Details

Markets on Trial: The Economic Sociology of the U.S. Financial Crisis: Part B
Type: Book
ISBN: 978-0-85724-208-2

Article
Publication date: 4 April 2016

Oluseyi Joshua Adegoke

In the absence of continuously traded, deep and securitised markets, commercial property valuations perform a vital function in the property market by acting as a surrogate for…

Abstract

Purpose

In the absence of continuously traded, deep and securitised markets, commercial property valuations perform a vital function in the property market by acting as a surrogate for transaction prices. The ability of valuers to make effective estimation of value is therefore a vital issue in commercial property market. The purpose of this paper is to examine the effects of valuation variance and inaccuracy on Nigerian commercial property market.

Design/methodology/approach

Questionnaires were used in collecting data from 163 randomly selected estate surveying and valuation firms in Lagos Metropolis with a record of over 60 per cent of the total population of estate surveying and valuation firms in Nigeria. Both descriptive and inferential statistics were used to analyse the data collected.

Findings

The results revealed that valuation variance and inaccuracy causes fluctuation in the price of property, sending wrong signal to the market participants and jeopardising the future of commercial property market. It also, exposed valuers to negligence liability, loss of valuers’ credibility and reduction of valuers’ integrity.

Practical implications

The paper concluded that quality data bank system is needed to obtain accurate comparables which are the cornerstone of market valuation. Also, surveyors in the academia should revisit the techniques they have developed with a view to replacing or modifying them into a format that are easy to use by practitioners. The findings of the study will be of importance to estate surveyors and valuers, estate surveying and valuation firms, government agencies in charge of property taxes as well as investors in commercial properties.

Originality/value

The paper is one of the few attempts at examining valuation variance and accuracy in Nigeria. This paper examined the effect of valuation variance and accuracy on Nigerian commercial property market.

Details

Journal of Property Investment & Finance, vol. 34 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 24 March 2021

Slah Bahloul and Nawel Ben Amor

This paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns…

Abstract

Purpose

This paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns across the different quantiles in order to determine their degree of international financial integration.

Design/methodology/approach

The authors use both ordinary least squares and quantile regressions from January 2007 to January 2018. Quantile regression permits to know how the effects of explanatory variables vary across the different states of the market.

Findings

The results of this paper indicate that the impact of local macroeconomic and global factors differs across the quantiles and markets. Generally, there are wide ranges in degree of international integration and most of MENA stock markets appear to be weakly integrated. This reveals that the portfolio diversification within the stock markets in this region is still beneficial.

Originality/value

This paper is original for two reasons. First, it emphasizes, over a fairly long period, the impact of a large number of macroeconomic and global variables on the MENA stock market returns. Second, it examines if the relative effects of these factors on MENA stock returns vary or not across the market states and MENA countries.

Details

International Journal of Emerging Markets, vol. 17 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 12 February 2024

Amitabh Anand, Liji James, Aparna Varma and Manoranjan Dhal

Ageism has deleteriously influenced individuals and society for nearly half a century. Despite receiving increased attention, it remains under-researched regarding how it might be…

Abstract

Purpose

Ageism has deleteriously influenced individuals and society for nearly half a century. Despite receiving increased attention, it remains under-researched regarding how it might be reduced in the workplace. Even though its prevalence and allure, review studies on workplace ageism (WA) are also scarce, and thus a review is warranted.

Design/methodology/approach

To fill the preceding void, this study will systematically review the existing literature on WA using data from the past four decades.

Findings

This study identified the various antecedents and the intervention mechanism through which WA may be reduced. Additionally, through reviews, the authors advance the research by offering promising avenues for future research.

Originality/value

This review contributes to human resources managers and will inspire future scholars to delve deeper into combating age discrimination, stereotypes and bias toward employees in workplaces.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 6 September 2013

Olga Dodd

Financial markets’ integration and technological advances in equity trading may have reduced the potential benefits from listing a firm's shares on a foreign exchange…

2360

Abstract

Purpose

Financial markets’ integration and technological advances in equity trading may have reduced the potential benefits from listing a firm's shares on a foreign exchange. Nevertheless, a significant number of firms continue to cross‐list every year. This paper examines the recent cross‐listing trends and reviews the literature on motives to cross‐list.

Design/methodology/approach

The literature review includes a summary of theoretical studies grouped into cross‐listing theories including market segmentation, liquidity, investor recognition, information disclosure, legal bonding, proximity preference and business strategy theories, and also includes a discussion of testable implications and empirical evidence for each of the above mentioned cross‐listing theories.

Findings

An extensive cross‐listing literature offers a number of theories on the motives to cross‐list that in most cases complement each other by encompassing different aspects of the complex cross‐listing behavior. Nevertheless, continuous market developments, such as significant regulatory and technological changes in the ways capital markets operate, raise new questions on why firms cross‐list and call for further research to continue.

Details

Review of Behavioural Finance, vol. 5 no. 1
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 24 May 2019

Zhenlong Li, Jie Guo and Panagiotis Andrikopoulos

The purpose of this paper is to examine the misvaluation hypothesis using a relative reference point (RRP) in mergers and acquisitions (M&A) market.

Abstract

Purpose

The purpose of this paper is to examine the misvaluation hypothesis using a relative reference point (RRP) in mergers and acquisitions (M&A) market.

Design/methodology/approach

The paper studies 1,878 M&A deals in the US market announced between January 1985 and December 2014.

Findings

The paper finds that bidders prefer stock payments when the RRP increases. The RRP is positively related to the offer premium and the target announcement returns. Although the RRP is negatively related to the bidder announcement returns, it is positively related to the long-run performance of bidders who time the market with overvalued stocks. The results are consistent with the predictions of the misvaluation hypothesis and reference point (RP) theory.

Originality/value

The authors construct a dynamic valuation framework to explain the misvaluation hypothesis by linking M&As’ misvaluation with RP theory. This paper provides direct evidence that the reference-dependence bias is prevalent for more experienced investors in major corporate investment decisions and offers fresh insights into the method of payment hypothesis.

Details

Review of Behavioral Finance, vol. 11 no. 1
Type: Research Article
ISSN: 1940-5979

Keywords

Book part
Publication date: 25 July 1997

Les Gulko

Abstract

Details

Applying Maximum Entropy to Econometric Problems
Type: Book
ISBN: 978-0-76230-187-4

Article
Publication date: 1 March 2001

K.G.B. Bakewell

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…

18596

Abstract

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Structural Survey, vol. 19 no. 3
Type: Research Article
ISSN: 0263-080X

Article
Publication date: 1 September 2001

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management…

14773

Abstract

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Facilities, vol. 19 no. 9
Type: Research Article
ISSN: 0263-2772

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