Since 2014
The Functionality of Book-to-Market Ratio in Chinese Markets
International Research in Economics and Finance
View Archive Info| Field | Value | |
| Title |
The Functionality of Book-to-Market Ratio in Chinese Markets
|
|
| Creator |
Li, Larry
McMurray, Adela Liu, Bo |
|
| Description |
We investigate the question whether the book to market ratio acts as a “risk-based” or “mispricing-based” proxy for share price formation in Chinese markets. We find that a strong relationship is observed between the firms’ book to market ratio and stock returns both in current and following years, while we cannot find a steady relationship between market leverage ratio and stock returns. In addition, the findings support the notion that a mispricing-based explanation is more plausible in China due to the speculative features of the Chinese markets.
|
|
| Publisher |
July Press Pte.Ltd.
|
|
| Contributor |
—
|
|
| Date |
2018-08-08
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
|
| Format |
application/pdf
|
|
| Identifier |
http://journal.julypress.com/index.php/iref/article/view/514
10.20849/iref.v2i2.514 |
|
| Source |
International Research in Economics and Finance; Vol 2, No 2 (2018); p50
2591-734X 2529-8038 |
|
| Language |
eng
|
|
| Relation |
http://journal.julypress.com/index.php/iref/article/view/514/388
|
|
| Rights |
Copyright (c) 2018 Larry Li, Adela McMurray, Bo Liu
http://creativecommons.org/licenses/by/4.0 |
|