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An Empirical Examination of Traditional Equity Valuation Models: The case of the Athens Stock Exchange

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  • G. A. Karathanassis
  • S. N. Spilioti

Abstract

Early theoretical work on equity valuation suggests that equity prices are determined by variables such as dividends and growth in dividends. This paper employs panel data methodology and equity prices from Athens Stock Exchange to empirically investigate the performance of the traditional models of equity valuation.

Suggested Citation

  • G. A. Karathanassis & S. N. Spilioti, 2004. "An Empirical Examination of Traditional Equity Valuation Models: The case of the Athens Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 133-142.
    • Handle: RePEc:ers:journl:v:vii:y:2004:i:1-2:p:133-142
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    References listed on IDEAS

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    1. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
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    5. Francis, J & Olsson, P & Oswald, DR, 2000. "Comparing the accuracy and explainability of dividend, free cash flow, and abnormal earnings equity value estimates," Journal of Accounting Research, Wiley Blackwell, vol. 38(1), pages 45-70.
    6. Bower, Richard S & Bower, Dorothy H, 1969. "Risk and the Valuation of Common Stock," Journal of Political Economy, University of Chicago Press, vol. 77(3), pages 349-362, May/June.
    7. Baltagi, Badi H & Raj, Baldev, 1992. "A Survey of Recent Theoretical Developments in the Econometrics of Panel Data," Empirical Economics, Springer, vol. 17(1), pages 85-109.
    8. El. Thalassinos & Th. Kiriazidis, 2003. "Degrees Of Integration In International Portfolio Diversification: Effective Systemic Risk," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 119-130, January -.
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    Cited by:

    1. G. A. Karathanassis & S. N. Spilioti, 2005. "An empirical application of the clean-surplus valuation model: the case of the Athens Stock Exchange," Applied Financial Economics, Taylor & Francis Journals, vol. 15(14), pages 1031-1036.

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    More about this item

    Keywords

    Equity valuation; book value; abnormal earnings; emerging markets; panel data;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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