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Journal of Business & Financial Affairs

ISSN: 2167-0234

Open Access

George Athanassakos

Ben Graham Chair in Value Investing, Richard Ivey School of Business,
London, Ontario, N6A 3K7
Canada

Publications
  • Research Article
    Are Negative P/E and P/B ratio Firms Different?
    Author(s): George AthanassakosGeorge Athanassakos

    Using separately AMEX, NASDAQ and NYSE stock market data for the period 1968-2011, the purpose of this paper is to examine whether negative multiple firms are different from positive ones by examining the performance of negative P/E or P/B firms and how this performance compared with the most widely examined positive multiples firms. We find that firms with negative multiples are indeed different than firms with positive in that (a) a relatively small number of firms with negative multiples experience high forward stock returns even though the majority of them does not resulting in a large difference between mean and median returns and (b) the small firm-low liquidity effect observed in positive multiple firms is not as clearly observed in the case of negative multiple firms. This indicates that prior academic research was right in excluding negative multiple firms from their analysis.. Read More»
    DOI: 10.4172/2167-0234.1000109

    Abstract PDF

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Citations: 1726

Journal of Business & Financial Affairs received 1726 citations as per Google Scholar report

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