A dynamic model of bank valuation

Georgios Bertsatos and Plutarchos Sakellaris

Economics Letters, 2016, vol. 145, issue C, 15-18

Abstract: We present a model of price-to-book (PB) valuation for banks that establishes a dynamic relationship between the PB valuation of equity and the cost of equity, expected growth of net income, and modified dividend payout ratio.

Keywords: Bank equity; Valuation; Systemically important banks; Pooled mean group estimation; Panel error correction (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:145:y:2016:i:c:p:15-18

DOI: 10.1016/j.econlet.2016.05.014

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