Accounting Valuation and CrossSectional Stock Returns in China
- Woo-Jong LeeAffiliated withSchool of Accounting and Finance, The Hong Kong Polytechnic University Email author
- , Yu ZhangAffiliated withSchool of Accounting and Finance, The Hong Kong Polytechnic University
Using accounting-based valuations, Frankel and Lee (1998) document a positive association between fundamental value-to-price ratio (V/P) and abnormal stock returns in subsequent periods. They attribute the V/P effect to the market’s gradual adjustment of stock prices towards a fundamental value, and this is regarded as counter-evidence for market efficiency (i.e. mispricing). This synopsis aims to examine whether the V/P effect also holds for Chinese companies.
- Accounting Valuation and CrossSectional Stock Returns in China
- Open Access
- Available under Open Access This content is freely available online to anyone, anywhere at any time.
China Accounting and Finance Review
- Online Date
- July 2014
- Online ISSN
- The Hong Kong Polytechnic University
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