Market Value, Book Value and Earnings: Is Bank Efficiency a Missing Link ?
The purpose of this study is to examine that the earnings components and banking efficiency are relevant to the market value of the banks or not. Testing the relationship we used DEA for the banking efficiency and regression model is estimated because it is panel study we used Common effect, fixed effect and random effect on the Pakistani banks included in this study. Frequency of data is yearly and is started from year 2008 to year 2012. Findings of our study gives number of directions, first of all in analysis it is found that the components of earnings are related to market value of the banks, secondly cost efficiency adds the additional information to the market. It can be concluded that earning’s components and operational efficiency both explain the market value further these results suggest that stock prices reflect both the information generated through market as well from the accounting System. This study helps to explain the market value of the shares through banking efficiency and accounting information. According to our best knowledge this study is unique among the studies because it is the first study in the emerging economy which explains the market value through earnings components and efficiency of the banks
Volume (Year): 2 (2014)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Web page: http://www.econ.hyperion.ro/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hyp:journl:v:2:y:2014:i:1:p:38-45. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulian Panait)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.