RT Journal Article
SR Electronic
T1 Traditional versus Clean-Surplus Valuation Models: <em>Evidence from U.K. Stocks</em>
JF The Journal of Investing
FD Institutional Investor Journals
SP 84
OP 93
DO 10.3905/joi.2010.19.4.084
VO 19
IS 4
A1 Stella N. Spilioti
A1 George A. Karathanassis
YR 2010
UL https://pm-research.com/content/19/4/84.abstract
AB Early theoretical work on equity valuation suggests that equity prices are a function of such variables as dividends and growth in dividends. Over the past few years the clean-surplus valuation approach has rekindled interest in empirical valuation models. This article employs panel data methodology and uses equity prices from the London Stock Exchange to compare empirically the performance of the traditional and the more-recent models of equity valuation. On the whole, the results show that the performance of the traditional valuation model is similar to that of the clean-surplus valuation model.TOPICS: Security analysis and valuation, technical analysis, exchanges/markets/clearinghouses