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Research paper on stock valuation and organizational performance Prepared for National University of Modern Languages Islamabad. Author compared a simple valuation model with Gordon And Gordon model. Results showed that investors quantify expectations from the stock based on five factors: I-expected earnings II-re-investment rate III-return on investment IV-risk adjustment discount rate Vthe length of period of competitive advantage.
Research paper on stock valuation and organizational performance Prepared for National University of Modern Languages Islamabad. Author compared a simple valuation model with Gordon And Gordon model. Results showed that investors quantify expectations from the stock based on five factors: I-expected earnings II-re-investment rate III-return on investment IV-risk adjustment discount rate Vthe length of period of competitive advantage.
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Research paper on stock valuation and organizational performance Prepared for National University of Modern Languages Islamabad. Author compared a simple valuation model with Gordon And Gordon model. Results showed that investors quantify expectations from the stock based on five factors: I-expected earnings II-re-investment rate III-return on investment IV-risk adjustment discount rate Vthe length of period of competitive advantage.
Drepturi de autor:
Attribution Non-Commercial (BY-NC)
Formate disponibile
Descărcați ca DOC, PDF, TXT sau citiți online pe Scribd
Moris G. Danielson(1998) studied the relationship between a simple valuation
Model and growth expectations. The author compared the model with Gordon And Gordon model.The results showed that investors quantify expectations from the stock based on five factors: I- Expected Earnings II- Re-investment rate III-Return on investment IV- Risk adjustment discount rate V- The length of the period of competitive advantage
2- A simple approach to common stock valuation
Bruce D. Fielitz and Fredrick L Muller(1985) studied the common stock valuation and investor’s decision making from 1973 to 1979 of 25 stocks using estimation. The results showed that statistically oriented models such as the simple price earning ratio approach are effective tools for valuing stocks.
3- Capital Structure and stock Returns
Ivo Welch(2004) analyzed the relationship b/w capital structure and stock returns on 2679 firms from 1964 to 2000 using normal distribution and central measure of tendency. The results showed that stock returns are a first order determinant of debt-ratios and they help to explain capital structure dynamics.
4- The Sock Valuation Process: The Analyst’s View
Lal C.Chugh and Joseph W.Meador(1984) determined that how analysts evaluate common stocks by surveying 2000 members of the financial analysts federation. The results showed that analysts mostly emphasize on long term over short term and expected changes in EPS, Expected return on equity and prospects for the relevance industry are considered important variables in long run. 5- The stock price effects of alternative types of Management Earnings forecast. Grace Pownall, Charles wasley and George waymire(1991) studied the relation between management forecasts and stock prices on 445 management forecasts from 1980 to 1987, using measures of dispersion and descriptive statistical tools. The results revealed that forecasts are less informative than earnings announcements and interim earnings forecasts are significantly more informative than annual forecast. 6- The economic dilution of employee stock options: Diluted EPS for valuation and Financial Reporting. John E. core wayne R.Guay and S.P Kothri(2000) derived a measure of diluted EPS that incorporates the economic implications of the dilutive effects of employee stock options for 731 employee stock plans using standard formulas for EPS, stock price Valuation and price earning ratios.The results showed that when the difference b/w diluted EPS and economic dilution increases, return earnings and price earnings will be lowered down.
7- Stock Valution and learning about Profitability
Lubos Pastor and Pietro Veronesi(2000) studied the effects of the knowledge about profitability about stock valuation on 150 firms using standard formulas for dividend growth models. The results showed that younger stocks and stocks that pay no dividends have more volatile returns.
8- Option Pricing:Valuation of models and applications
Mark Broadie and Jerome B. detemple(2004) analyzed option pricing from its origin to the present. The paper is a descriptive proof of different types of option pricing.The authors emphasized on recent trends in methodology and modeling for stock valuation.
9- Impact of earnings, Dividends and cash flows on
stock returns: case of Taiwan’s stock Market Eric Liluan Chu (1994) studied the relationship b/w stock returns and fundamental information such as earnings, dividends and cash flows on671 firms from 1991 to 1994 using testing and hypothesis. The results showed that accounting earnings are positively related to stock returns. 10- Inter-relation of comparable company selection and valuation model choice Reilly and Brown(2000) studied the relationship b/w comparable company selection and valuation model choice based on survey performed on 203 financial analysts. The results showed that 50% of the analysts admitted that valuation model choice is associated with problems faced by the company.
11- Social Responsibility and Stock valuation
H.Russel Foglor and Fred Nutt(1975) studied the relationship b/w social responsibility of the firm and stock valuation on 17 companies by using regression correlation. The results showed that institutional investors do not reflect a high social concern in their actual investing.
12- Measurement effects and the variance of returns
after stock splots and stock dividends Jeniffer Lynch Koski(1998) studied the relationship b/w two factors- Bid-ask spread and price discreteness on 361 samples using central measure of tendency . The results showed that spreads and price discreteness do not explain increased variance after stock distributions.
13- Use of Stock price information to regulate firms
Antoine Faure Grimaud(1996) examined the role of information contained in stock prices in the regulation of privatized firms. He concluded that there is a positive role of stock price information in a double sided incentive problem b/w regulated firms and regulators.
14- A Fundamental analysis of Korean stock returns
Sadip Mukerji, Manjeet S. Dhatt and young H. kim(1993) studied the relationship b/w stock returns and fundamental variables in Korea during 1982-1993 on a sample which only inclided those firms whose business year ends in December by using correlation coefficient. The results showed that the stock returns during 1982-1993 were positively related with book- market,sales price and debt-equity ratio while negatively related with firm size and not related to earnings price ratio. 15- Shareholder’s consumption patterns, valuation and required rate of return. David C. Fletcher (1975) studied the relationship b/w shareholder’s consumption patterns, valuation and the required rate of return. The author concluded that the stock dividend option enables the shareholders to attain any pay-out ratio and adjust his income over time at a minimum cost.
16- Dividend and Investment Decisions of Canadian firms
Ievan Morgan, Jacques saint-pierre(1978) analyzed the relationship between dividend decisions and investment decisions of the firm, on 298 American companies for the period of 1946-1968, using testing of hypothesis. The results showed that there is no relationship between investment decisions and dividend decisions i.e they both are separable. 17- Taxes and Organizational Form David A.Guenther(1992) studied the impact of tax cost on organizational form(corporations or partnerships) on 95 corporations from the period of 1978 to 1985, using testing of hypothesis. The results showed that the tax cost is greater for corporations in comparison to that of partnerships. so a change in tax rates affects the relative tax cost of competing organizational form , which is likely to change capital structure decisions. 18- The dividend-price ratio and expectations of future dividends and discount factors. John Y. Campbell and Robert J.Shiller(1989) studied the relationship between dividend price ratio and expectations of future dividends,discount factors on prices and dividends for the Standard and Poor’s composite stock price index(500) using the formula of dividend-ratio,which shows a linear relationship between returns,dividends and prices. the results showed that dividends price-ratio does move with rationally expected future growth in dividends and short term interest rates, consumption growth and validity of stock returns are helpful in explaining stock movements.