X-Message-Number: 9793
Date: Thu, 28 May 1998 03:00:00 -0700 (PDT)
From: Doug Skrecky <>
Subject: stock market inefficiences

Financial Analysts Journal  March/April 1996: 56-60

"Do Sales-Price and Debt-Equity Explain Stock Returns Better Than
Book-Market and Firm Size?"

Abstract:

   During the 1979-91 period, the sales-price ratio and the debt-equity
ratio had greater explanatory power for stock returns than either the
book-market value of equity ratio or the market value of equity.
Furthermore, the sales-price ratio captures the role of the debt-equity
ratio in explaining stock returns. Neither the book-market value of equity
ratio nor the market value of equity has consistent explanatory power for
stock returns, and the sales-price ratio is a more reliable explanatory
factor.

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