The value and accounting premium for South African-listed shares
In the last decade, empirical research has found strong evidence that value stocks provide higher returns than growth stocks (value premium). Firms with a high ratio of book value of equity to market value of equity are regarded as value stocks; a low ratio identifies growth stocks. Most research is...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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AOSIS
2008-10-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/354 |
| _version_ | 1811272930921807872 |
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| author | Jürgen Ernstberger Christian Heinze Oliver Vogler |
| author_facet | Jürgen Ernstberger Christian Heinze Oliver Vogler |
| author_sort | Jürgen Ernstberger |
| collection | DOAJ |
| description | In the last decade, empirical research has found strong evidence that value stocks provide higher returns than growth stocks (value premium). Firms with a high ratio of book value of equity to market value of equity are regarded as value stocks; a low ratio identifies growth stocks. Most research is tailored to the market in the United States of America. Only a few studies consider country-specific distinctions. This research analyses the value premium for the South African market and compares its magnitude to the findings for the US market. Moreover, the effects of the introduction of International Financial Reporting Standards (IFRS) for companies listed at the JSE Limited are examined. The adoption of IFRS is used to demonstrate that investors award an accounting premium for voluntary compliance with this new accounting standard. |
| first_indexed | 2024-04-12T22:48:56Z |
| format | Article |
| id | doaj.art-2d14ac27579c4f16b6f936574db633e3 |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-04-12T22:48:56Z |
| publishDate | 2008-10-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-2d14ac27579c4f16b6f936574db633e32022-12-22T03:13:25ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032008-10-012218720210.4102/jef.v2i2.354295The value and accounting premium for South African-listed sharesJürgen Ernstberger0Christian Heinze1Oliver Vogler2Georg-August-University GoettingenUniversity of RegensburgUniversity of RegensburgIn the last decade, empirical research has found strong evidence that value stocks provide higher returns than growth stocks (value premium). Firms with a high ratio of book value of equity to market value of equity are regarded as value stocks; a low ratio identifies growth stocks. Most research is tailored to the market in the United States of America. Only a few studies consider country-specific distinctions. This research analyses the value premium for the South African market and compares its magnitude to the findings for the US market. Moreover, the effects of the introduction of International Financial Reporting Standards (IFRS) for companies listed at the JSE Limited are examined. The adoption of IFRS is used to demonstrate that investors award an accounting premium for voluntary compliance with this new accounting standard.https://jefjournal.org.za/index.php/jef/article/view/354value premiumaccounting premiumSouth Africaasset pricingFama-French modelmulti-factor model |
| spellingShingle | Jürgen Ernstberger Christian Heinze Oliver Vogler The value and accounting premium for South African-listed shares Journal of Economic and Financial Sciences value premium accounting premium South Africa asset pricing Fama-French model multi-factor model |
| title | The value and accounting premium for South African-listed shares |
| title_full | The value and accounting premium for South African-listed shares |
| title_fullStr | The value and accounting premium for South African-listed shares |
| title_full_unstemmed | The value and accounting premium for South African-listed shares |
| title_short | The value and accounting premium for South African-listed shares |
| title_sort | value and accounting premium for south african listed shares |
| topic | value premium accounting premium South Africa asset pricing Fama-French model multi-factor model |
| url | https://jefjournal.org.za/index.php/jef/article/view/354 |
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