Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/23817
DC Field | Value | Language |
---|---|---|
dc.contributor | School of Accounting and Finance | en_US |
dc.creator | Chue, TK | en_US |
dc.date.accessioned | 2015-07-13T10:33:15Z | - |
dc.date.available | 2015-07-13T10:33:15Z | - |
dc.identifier.issn | 0823-9150 | en_US |
dc.identifier.uri | http://hdl.handle.net/10397/23817 | - |
dc.language.iso | en | en_US |
dc.publisher | Wiley-Blackwell | en_US |
dc.rights | © CAAA | en_US |
dc.rights | This is the peer reviewed version of the following article: Chue, T.K. (2015), Understanding Cross-Country Differences in Valuation Ratios: A Variance Decomposition Approach. Contemp Account Res, 32: 1617-1640. https://doi.org/10.1111/1911-3846.12127, which has been published in final form at https://doi.org/10.1111/1911-3846.12127. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | en_US |
dc.title | Understanding cross-country differences in valuation ratios : a variance decomposition approach | en_US |
dc.type | Journal/Magazine Article | en_US |
dc.identifier.spage | 1617 | en_US |
dc.identifier.epage | 1640 | en_US |
dc.identifier.volume | 32 | en_US |
dc.identifier.issue | 4 | en_US |
dc.identifier.doi | 10.1111/1911-3846.12127 | en_US |
dcterms.abstract | We use a variance decomposition approach to examine why aggregate valuation ratios differ across countries. In a cross section of 22 developed countries from 1980 to 2009, we find that 50 percent of all cross-country differences in the aggregate price-to-book ratio (P/B) can be explained by cross-country differences in expected future five-year profitability. In the second half of our sample period, this percentage exceeds that of the first half, rising to almost 64 percent. Although international differences in accounting standards and conventions may have made earnings from different countries more difficult to compare relative to dividends, we find that it is still cross-country differences in expected future profitability, rather than dividend growth rates, that are more closely related to international differences in valuation ratios. Even among 25 emerging markets, we find that expected future profitability at the five-year horizon can account for 29 percent of all cross-country P/B variations. Our results show that international investors are able to identify substantial cross-country differences in future-earnings prospects and incorporate them into stock market valuations. | en_US |
dcterms.accessRights | open access | - |
dcterms.bibliographicCitation | Contemporary accounting research, Winter 2015, v. 32, no. 4, p. 1617-1640 | en_US |
dcterms.isPartOf | Contemporary Accounting Research | en_US |
dcterms.issued | 2015 | - |
dc.identifier.scopus | 2-s2.0-84926444018 | - |
dc.identifier.rosgroupid | 2015005577 | - |
dc.description.ros | 2015-2016 > Academic research: refereed > Publication in refereed journal | en_US |
dc.description.oa | Accepted Manuscript | - |
dc.identifier.FolderNumber | a0782-n02 | - |
dc.identifier.SubFormID | 1683 | - |
dc.description.fundingSource | RGC | - |
dc.description.fundingText | 540408 | - |
dc.description.pubStatus | Published | - |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
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CCDiffDraft39.pdf | Pre-Published version | 766.02 kB | Adobe PDF | View/Open |
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