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An empirical application of the clean-surplus valuation model: the case of the Athens Stock Exchange

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

Abstract

Recent studies on equity valuation suggest that security prices should be determined by book value and discounted future abnormal earnings (Ohlson, 1995; Feltham and Ohlson, 1995). This paper examines the empirical validity of these theoretical models for the Greek equity market. More specifically, it uses a panel data methodology to study equity prices for important sectors of the economy. To anticipate the results, these models appear to be reliable price valuation models, for Greek equities.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:apfiec:v:15:y:2005:i:14:p:1031-1036
    DOI: 10.1080/09603100500107628
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    References listed on IDEAS

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