We decompose the market-to-book ratio into two additive components: a conservatism correction factor and a future-to-book ratio. The conservatism correction factor exceeds the benchmark value of one whenever the accounting for past transactions has been subject to an (unconditional) conservatism...

From 1963 through 2015, idiosyncratic risk (IR) is high when market risk (MR) is high. We show that the positive relation between IR and MR is highly stable through time and is robust across exchanges, firm size, liquidity, and market-to-book groupings. Though stock liquidity affects the...

Do U.S. publicly-traded companies led by entrepreneurs perform better than nonentrepreneur-led U.S. public companies? Our data suggests they do. We analyze monthly stock returns of U.S. publicly traded companies over the time period 1998-2010 and find compelling evidence demonstrating that...

The purpose of this research is to determine the main forecasting factors of stock analysts, to analyze whether stock analysts have a rational base for their advice to the individual investors. According to the Modigliani-Miller theorem, the factors which affected to dividend and capital gain...

Improvements in investment efficiency and increase in volume of investments are parts of investment activity, and the growth of it is a necessary condition for economic development in every country. In environment of external mechanisms weakness for favorable investment climate creation, the use...

This case pertains to the valuation approach for a common stock being considered for purchase by a student in a Student-Managed Fund (SMF) class at a university. The fundamental factors of analysis pertaining to the profile of the company include the firm's products/services, the nature of the...

This research tries to find evidence for the Halloween effect by presenting an assessment of the profitability of the “Sell in May, and go away” investment strategy associated with this phenomenon. We present significant proof of the existence of the Halloween effect; it was observed in 29...

This study aimed to test five fundamental factors (growth, profitability, leverage, liquidity, and efficiency) and two market ratios (earning ratio, and price earning ratio) that predicted to influence stock price in several groups of manufacturing industries listed in Jakarta Stock Exchange...

This paper addresses the question whether the net asset value (NAV) return of listed private equity is similar to the NAV return of unlisted private equity funds. I use NAV indices from LPX and NAV data from Preqin. I find a high correlation between the NAV of listed and unlisted private...