Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2018.1484787
Selecting a better valuation model to measure bubble level of stocks price: empirical study from internet-based finance stocks in A-share market
Yi Zhao
; School of Economics and Management, Hebei University of Technology, Tianjin, China
Baiqing Sun
; School of Management, Harbin Institute of Technology, Harbin, China
Binqing Xiao
; School of Management and Engineering, Nanjing University, Nanjing, China
Fu Cheng
; School of Business Administration, Northeastern University, Shenyang, China
Sažetak
As a star of emerging industries in China, internet-based finance
has been developing rapidly. This paper, considers selecting a
more suitable valuation model to measure the intrinsic value
and price bubble of Internet-based Finance stocks. By comparing
the relative valuation accuracy of the Kim et al. model with
the Frankel-Lee model and the F-O model applied in the prior
studies, this study finds that the Kim et al. model highlights the
industry-specific features and outperforms other models in
interpreting stocks price variation. Especially, under the circumstance
of soaring and slumping stocks price variation (e.g.
2015), it is essential to study the price bubbles of internetbased
finance stocks at different points of Shanghai Stock
Exchange Composite Index. Surprisingly, our empirical results
suggest that the internet-based finance stocks have negative
bubbles at the whole average level, and about half of them are
undervalued. Moreover, there are positive correlations between
the bubble level and three key factors including the trading
volume, the price to book ratio and whether to do cross-industry
business on internet-based finance. These findings imply
that the Kim et al. model contributes to improving valuation
accuracy of internet-based finance stocks and explainability of
the price bubbles in A-share market.
Ključne riječi
Internet-based finance; intrinsic value; valuation model; bubble level
Hrčak ID:
209138
URI
Datum izdavanja:
3.12.2018.
Posjeta: 925 *