The relationship of earnings and book values to equity values :
Joint Authors
Isik, Ihsan
Isik, Ebru
Anandarajan, Asokan
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2002, Issue 201-240 (31 Dec. 2002)17 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2002-12-31
Country of Publication
Egypt
No. of Pages
17
Main Subjects
Topics
Abstract EN
In this study, we examine factors associated with equity valuation in a newly emerging market, Turkey.
In the United States and other developed countries, research indicates that both earnings and book value are important predictors of equity valuation.
In Turkey, earnings appear to have information content, but earnings appear to be declining in importance over time.
Book value adjusted for inflation has a stronger association with equity values.
In the inflationary and risky environment of Turkey, where future value of earnings is quite uncertain, investors may be paying less attention to earnings.
Our study also indicates that, overall, earnings and inflation-adjusted book values combined virtually explain almost 75 percent of the variation in equity prices.
This is much higher than results using U.
S.
data where the maximum R2 for pooled data is 15 percent.
American Psychological Association (APA)
Isik, Ihsan& Isik, Ebru& Anandarajan, Asokan. 2002. The relationship of earnings and book values to equity values :. Economic Research Forum : Working Paper Series،Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-149602
Modern Language Association (MLA)
Isik, Ihsan…[et al.]. The relationship of earnings and book values to equity values :. Economic Research Forum : Working Paper Series No. 201-240 (Dec. 2002).
https://search.emarefa.net/detail/BIM-149602
American Medical Association (AMA)
Isik, Ihsan& Isik, Ebru& Anandarajan, Asokan. The relationship of earnings and book values to equity values :. Economic Research Forum : Working Paper Series. 2002. Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-149602
Data Type
Journal Articles
Language
English
Notes
Includes appendix.
Record ID
BIM-149602