Sharpen your understanding of the financial markets with this incisive volume Equity Markets, Valuation, and Analysis brings together many of the leading practitioner and academic voices in finance to produce a comprehensive and empirical examination of equity markets. Masterfully written and edited by experts in the field, Equity Markets, Valuation, and Analysis introduces the basic concepts and applications that govern the area before moving on to increasingly intricate treatments of sub-fields and market trends. The book includes in-depth coverage of subjects including: _ The…mehr
Sharpen your understanding of the financial markets with this incisive volume
Equity Markets, Valuation, and Analysis brings together many of the leading practitioner and academic voices in finance to produce a comprehensive and empirical examination of equity markets.
Masterfully written and edited by experts in the field, Equity Markets, Valuation, and Analysis introduces the basic concepts and applications that govern the area before moving on to increasingly intricate treatments of sub-fields and market trends. The book includes in-depth coverage of subjects including:
_ The latest trends and research from across the globe
_ The controversial issues facing the field of valuation and the future outlook for the field
_ Empirical evidence and research on equity markets
_ How investment professionals analyze and manage equity portfolios
This book balances its comprehensive discussion of the empirical foundations of equity markets with the perspectives of financial experts. It is ideal for professional investors, financial analysts, and undergraduate and graduate students in finance.
H. KENT BAKER, CFA, CMA, is the University Professor of Finance at the Kogod School of Business at American University. Professor Baker is an award-winning author/editor of 36 books. GREG FILBECK, CFA, FRM, CAIA, CIPM, PRM, is the Samuel P. Black III Professor of Finance and Risk Management at Penn State Behrend, and serves as the director for the Black School of Business. HALIL KIYMAZ, CFA, is the Bank of America Professor of Finance at the Crummer Graduate School of Business at Rollins College.
Inhaltsangabe
Acknowledgments xiii
About the Editors xv
About the Chapter Authors xvii
Chapter 1 Equity Markets, Valuation, and Analysis: An Overview 1 H. Kent Baker, Greg Filbeck and Halil Kiymaz
Introduction 1
About This Book 3
Structure of the Book 5
Summary and Conclusions 12
References 13
Part One Background
Chapter 2 Ownership Structure and Stock Classes 17 Christopher J. Barnes, Ehsan Nikbakht and Andrew C. Spieler
Introduction 17
Single-Class Common Equity 18
Dual-Class Common Equity 26
Summary and Conclusions 29
Discussion Questions 29
References 29
Chapter 3 Equity Markets and Performance 33 Jay T. Brandi and Xudong Fu
Introduction 33
The Equity Market and the Economy 35
Market Indicators 39
Good Markets - Liquidity 40
Good Markets - Efficiency 41
Information Disclosure 43
Enforcement 43
Monetary Policies 44
Investments: Comparative Risk and Return 44
Stocks Versus Bonds: The Issuer's Perspective 47
Summary and Conclusions 48
Discussion Questions 48
References 48
Chapter 4 Securities Regulation 51 Douglas Cumming and Sofia Johan
Introduction 51
Trading Rules and Rules Pertaining to Broker-Dealer Conduct 52
Surveillance 58
Enforcement 59
Impact of Trading Rules and Surveillance on Corporate Outcomes 59
Summary and Conclusions 60
Discussion Questions 61
References 61
Chapter 5 Investor Psychology and Equity Market Anomalies 63 Hunter M. Holzhauer
Introduction 63
Investor Psychology: Bounded Rationality 64
Investor Psychology: Prospect Theory 65
Equity Market Anomalies: Violations of the EMH 67
Summary and Conclusions 73
Discussion Questions 74
References 74
Part Two Valuation and Analysis
Chapter 6 Financial Statement Analysis and Forecasting 81 Somnath Das and Shailendra Pandit
Introduction 81
Background 82
Technical Analysis-Based Forecasting 83
Time Series-Based Forecasting 83
Fundamental Analysis-Based Forecasting 85
Process of Analyzing Financial Statements 85
Evidence on the Usefulness of Financial Statement Analysis 86
Security Analysts and Financial Statement Analysis 88
Limitations of Using Financial Statement Analysis in Forecasting 90
Summary and Conclusion 91
Discussion Questions 92
References 92
Chapter 7 Fundamentals of Equity Valuation 97 Emmanuel Boutron, Alain Coën and Didier Folus
Introduction 97
What is Equity Valuation? 97
Free Cash Flow-Based Valuation 101
Dividend-Based Valuation 104
Market-Based Valuation: Multiples and Ratios 106
Modeling the Required Asset Return 108
Option Theory-Based Valuation 110
Summary and Conclusions 111
Discussion Questions 111
References 111
Chapter 8 Company Analysis 113 David Craig Nichols
Introduction 113
Three Steps Linking Business Activities to Equity Prices 113