IDEAS home Printed from https://ideas.repec.org/a/ris/joefas/0078.html
   My bibliography  Save this article

Effectiveness of corporate finance valuation methods: Piotroski score in an Ohlson model: the case of Mexico

Author

Listed:
  • Durán-Vázquez, Rocío

    () (Universidad de las Americas Puebla)

  • Lorenzo-Valdés, Arturo

    (Universidad de las Americas Puebla)

  • Castillo-Ramírez, Claudia

    (Universidad de las Americas Puebla)

Abstract

This study applied the Piotroski score for 63 selected companies of Mexico, for the period 2005 to 2011. The Piotroski score provides an evaluation on the historical financial performance of a company, with the evaluation of nine financial analysis ratios or criteria. We decided to add this score to the Ohlson Model (which was already tested in previous studies). It was found that the Piotroski score showed statistically significant results in the levels and differences variables. Asymmetric signs were also found in the Piotroski-score variables (levels and lagged), both of them are consistent according to the behavior of the Mexican market. The data were analyzed under a dynamic panel basis, with fixed effects, and the Sargan statistic for this analysis was fulfilled.

Suggested Citation

  • Durán-Vázquez, Rocío & Lorenzo-Valdés, Arturo & Castillo-Ramírez, Claudia, 2014. "Effectiveness of corporate finance valuation methods: Piotroski score in an Ohlson model: the case of Mexico," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 19(37), pages 104-107.
  • Handle: RePEc:ris:joefas:0078
    as

    Download full text from publisher

    File URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2533671
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Financial markets; Piotroski score; Ohlson model; Dynamic panel of econometric estimation;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:joefas:0078. 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: (ESAN Ediciones). General contact details of provider: http://edirc.repec.org/data/esannpe.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.