Purpose – To test the Miller Price Optimism Model using a new proxy for heterogenous expectations and to examine if high differential stocks behave like glamour stocks and low differential stocks behave like value stocks. Design/methodology/approach – Whisper/analyst forecast differentials...

Purpose – The purpose of this paper is to investigate the forecasting power of the conditional relationship between beta and international stock returns. Design/methodology/approach – Using the market model, the individual betas for each country in the sample are estimated by ordinary least...

Purpose – The purpose of this paper is to investigate the forecasting power of the conditional relationship between beta and international stock returns. Design/methodology/approach – Using the market model, the individual betas for each country in the sample are estimated by ordinary least...

Purpose – There are several studies that investigate evidence for mean reversion in stock prices. However, there is no consensus as to whether stock prices are mean reverting or random walk (unit root) processes. The goal of this paper is to re-examine mean reversion in stock prices....

Purpose – Audit quality studies document that accruals decrease when the audit firm is large, or the audit firm is an industry specialist, or the audit-client tenure is long. The purpose of this paper is to posit that incentives related to highly-valued equity mitigate these results, as...

The purpose of dividend policy, promoted by a joint-stock company may be: building trust and forming a true business ownership, business growth, increase creditworthiness of the company and of trust others to it. The paper aim is to study the dividend policy to those five Romanian Financial...

Purpose – Past studies have shown that investment strategy using two popular metrics, the earnings-price ratio (EP) and book-to-market ratio (BM) enable investors to reap abnormal returns. More recent development of another ratio, economic value-added-to-market value (EVAM) can be seen as a...

Purpose – The purpose of this paper is to investigate the sources of the apparent episodic stationarity of the P/E ratio. Design/methodology/approach – The Stock–Watson procedure is used to decompose a VAR/VMA model into changes in structure and changes volatility. In theory, if the P/E...

Purpose – The purpose of this study is to compare the performance of a low-P/E strategy relative to that of two alternative value strategies, one based on the PEG ratio and another on the PERG ratio (a magnitude introduced in this article). Design/methodology/approach – The data used...

The study examines the relationship among Malaysian’s market stock return, dividend yields and price earnings rato. Specifically, it examines the existence of long-run and short-run relationship and also their predictive power (causality) between and among market stock return, dividend yieds...