RT Journal Article
SR Electronic
T1 Returns and Pricing in Emerging Markets
JF The Journal of Investing
FD Institutional Investor Journals
SP 45
OP 56
DO 10.3905/joi.2004.391041
VO 13
IS 1
A1 Harri Ramcharran
YR 2004
UL https://pm-research.com/content/13/1/45.abstract
AB This study estimates the significance of price-to-book, price-to-earnings, and market size as determinants of equity returns of 21 emerging equity markets over 1991–2000. Cross-sectional data indicate the significance of the P/BV ratio and market size, but pooled data results show the significance of only P/BV; these findings are similar to results in developed markets. Additional estimates confirm the insignificance of P/E ratio, thus proving the P/BV is a better predictor of equity returns. This study provides further insight into the discussion on the choice between P/BV and P/E.