Survey and Market‐based Evidence of Industry‐dependence in Analysts’ Preferences Between the Dividend Yield and Price‐earnings Ratio Valuation Models

Richard G. Barker

Journal of Business Finance & Accounting, 1999, vol. 26, issue 3‐4, 393-418

Abstract: Prior research has shown that analysts’ preferred valuation models are the price‐earnings (PE) ratio and the dividend yield. This paper presents strong evidence that the relative importance of these two models varies according to stock market sector. Companies in the services, industrials and consumer goods sectors are shown to be ‘PE‐valued’ while financials and utilities companies are shown to be ‘yield‐valued’. These findings are derived from survey research and then tested in a market‐based model. This use of independent, mutually reinforcing research methods contributes to the robustness of the findings.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/1468-5957.00261

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:jbfnac:v:26:y:1999:i:3-4:p:393-418

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().