The book-market ratio effect on stock returns essay
Therefore, the study examined the effects of company size, market-to-book value per share ratio and price-to-earnings ratio on the stock returns of selected companies in Nigeria in 2016. The return premiums associated with size and book-to-market arise between paired shares of very similar companies. The Sharpe ratios of the traditional Fama-French factors SMB and HML can be more than doubled if this new pair-based approach is applied. Moreover, the proposed investment strategies are highly specific: Ball 1978 argues that the earnings-to-price ratio, or EIP ratio, is a general measure of unspecified risk factors in expected returns. for other firm characteristics such as financial leverage see Bhandari, 1988, dividend yield see Litzenberger and Ramaswamy, 1979, and book-to-market ratio see Rosenberg et al. 1985 also appears to show, Market to Book Ratio terhadap Stock Return di Bursa Efek Indonesia”. Putra et al. 2018 and Sucipto amp Chasanah 2019 indicate that the DER ratio has a negative effect on stock returns. This research shows that stocks with low book-to-market ratios, also known as glamor stocks, have significantly more positive skew in their return differentials. Book-to-market ratio and stock return skewness. Accounting Review, Vol. 88, No. 6, 2013. Posted: 5 Last Revised: 2. Ratio, dividend yield and book-to-market ratio and find that all ratios have a significant effect on the stock returns of the Japanese market. They also argue that the relationship between stock returns and β, size ME, leverage, book-to-market stock ratio and earnings-price ratio EP in the Hong Kong stock market is examined using the Fama and the French FF, J 1992 427 approach. FF notes that two variables, size and book-to-market equity, together determine the cross. Moreover, the BM ratio in the book market also plays an important role in the study of stock predictability. Jiang and Lee 2007 demonstrate the predictive power of the BM ratio and log dividend yield in terms.