Microeconomic (Company Specific) Factors as Determinants of Equity Returns

  • Manolis G. Kavussanos
  • Stelios N. Marcoulis
Chapter

Abstract

In this chapter, in addition to the market effect on equity returns, which was examined in some detail in chapter 4, the following set of microeconomic (accounting or company specific) factors are considered as possible determinants of stock returns: market value of equity, book-to-market value of equity ratio, earnings-to-price ratio, asset-to-market value of equity ratio, and asset-to-book value of equity ratio. As might be recalled from chapter 1, this set of factors has been investigated in the general literature on stock returns in the past. The findings of this chapter indicate that there are factors beyond the market which influence each industry’s stock returns. These factors differ according to the industry being investigated.

Keywords

Real Estate Stock Return Excess Return Market Excess Equity Ratio 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 2001

Authors and Affiliations

  • Manolis G. Kavussanos
    • 1
  • Stelios N. Marcoulis
    • 1
    • 2
  1. 1.City University Business SchoolLondonUK
  2. 2.Laiki InvestmentsCyprus Popular Bank GroupNicosiaCyprus

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