Comparison Of The Residual Income Valuation, Abnormal Earnings Growth And Free Cash Flow Models: An Empirical Study Of The Brazilian Capital Market
| Autor: | Arilda Magna Campanharo Teixeira, Bruno Cesar Aurichio Ledo, Eric Serrano Ferreira, Valcemiro Nossa, Alexsandro Broedel Lopes |
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| Rok vydání: | 2008 |
| Předmět: |
Economics and Econometrics
Free cash flow Financial economics Strategy and Management Earnings growth Empirical research Management of Technology and Innovation Accounting Linear regression residual income valuation abnormal earnings growth free cash flow panel data Economics Business and International Management Explanatory power Capital market Panel data Residual income valuation |
| Zdroj: | Brazilian Business Review. 5:143-162 |
| Popis: | This study compares the explanatory power of the residual income valuation (RIV), abnormal earnings growth (AEG) and free cash flow (FCF) models in the Brazilian capital market, through an empirical test to compare the three models, using data on companies listed on the BOVESPA. Each model was analyzed annually over the period from 1995 to 2002 by multiple linear regression. The results show that from 1995 to 1999 the RIV model had better explanatory power than the other two models, and from 2000 to 2002 the AEG and RIV models were the same, an indicator of the Brazilian market’s development in the more recent years of the study period. The FCF model had the least explanatory power in all the years analyzed. The results were confirmed by panel data analysis. |
| Databáze: | OpenAIRE |
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