The Investment Performance of Common Stocks in Relation to Their Price-Earnings Ratios: An Update of the Basu Study

R Stafford Johnson, Lyle C Fiore and Richard Zuber

The Financial Review, 1989, vol. 24, issue 3, 499-505

Abstract: In this paper, the relationship between the investment performances of equity securities and their price-earnings ratios is examined using an approach similar to the one employed by S. Basu in a 1977 paper. From the tests, the authors conclude that, from 1979 through 1984, there were some moderate excess rates of return earned by selecting stocks based on their price-earnings ratios, but that these excess rates were not obtained from investing in low price-earnings stocks. Copyright 1989 by MIT Press.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:24:y:1989:i:3:p:499-505

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().