Fundamental and Macroeconomic Information for the Security Prices Valuation: the French Case

Article Abstract:

Keywords: Fundamental analysis, macroeconomic information, stock returns, security valuation This research aims at assessing the usefulness of fundamental and macroeconomic information to the French market. A relationship between abnormal returns and fundamentals is analyzed between 1992 and 1997. The empirical findings show that the strength of the returns-fundamentals association increases when two macroeconomic variables are added to the explanatory model. The pooled regression [R.sup.2] varies from 14 to 29% depending upon whether the abnormal returns are regressed on the fundamentals only or on the fundamentals and the two macroeconomic variables. The pooled regression [R.sup.2] is also strongly affected. This coefficient varies from 14 to 29% depending upon whether the stock returns are regressed on the three factors only or on the three factors and the two macroeconomic variables. These results clearly show that financial statements and macroeconomic data provide informations to value security prices.

---

Empirical Applications of the Ohlson [1995] and Feltham and Ohlson [1995, 1996] Valuation Models

Article Abstract:

Keywords: Models, Empirical Work, Accounting, Policy The influential papers by Ohlson [1995] and Feltham and Ohlson [1995, 1996] contain valuation models that provide structure for empirical work on the relation between equity values and (current) accounting numbers. Empirical applications of these models include policy-oriented studies as well as direct tests of these models. This paper reviews these applications and considers directions that such applications are likely to take in the future.

---

Similar abstracts:

• Abstracts: Similarities and contradictions in the core logic of three strategy research streams. Strategy research: governance and competence perspectives
• Abstracts: Gender, income differences, and marketing: examining the "earnings gap" in three areas of marketing. Interimistic Relational Exchange: Conceptualization and Propositional Develoopment
• Abstracts: Ripoffs, lemons, and reputation formation in agency relationships: a laboratory market study. Crossing networks and dealer markets: competition and performance
• Abstracts: Performance measurement, budgeting and strategic implementation in the multinational enterprise. The gold standard: a critique of Friedman, Mundell, Hayek and Greenspan from the free enterprise perspective
• Abstracts: Resource allocation, investment decision and economic welfare: capitalism, socialism and Islam. Executive Compensation and the Horizon Problem: A Synthesis of the Economics of Age and Decision Management

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.