Table 6.

Price perspective: RIM model

Dep. variable: STOCK PRICEOLSOLSROBUST
BV0.83 (17.1)***0.77 (15.8)***0.83 (11.4)***
AR0.15 (9.4)***0.17 (10.5)***0.15 (7.4)***
DUMSECTORNOYESNO
DUMYEARNOYESNO
CONST0.08 (0.87)−0.16 (−1.02)0.08 (0.68)
R20.820.840.82
P > F0.0000.0000.000
RMSE0.770.740.77
N279279279

Notes:

RIM (price model), BV (book value), AR (PV of abnormal returns), DUMSECTOR and DUMYEAR are the dummy variables for sector and year. The model: P = α+b1BV +b2AR+ DUMSECTOR + DUMYEAR

*

p < 0.1;

**

p < 0.05;

***

p < 0.01;

OLS is used based on the Breusch–Pagan test to choose between random effect and OLS

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