Redirigiendo al acceso original de articulo en 19 segundos...
ARTÍCULO
TITULO

An empirical relationship between company growth and the market price of securities listed on the Johannesburg Stock Exchange

Narendra Bhana    

Resumen

AbstractThere appears to be a widespread belief among investors that growth companies and growth stocks are identical. The objective in this article is to determine if the shares of high growth companies listed on the Johannesburg Stock Exchange (JSE) provided superior investment returns during the period 1974-88. The empirical evidence revealed that high growth companies underperform because the market overestimates their future growth and future return on equity, as a result their shares tended to have overvalued price-earnings ratios. Therefore, the investor will incur substantial losses if their results are below expectations. It is hypothesized that a cognitive bias may be responsible for the erroneous identification of growth stocks as shares of growth companies. Company results have a tendency to regress to the mean as the underlying economic forces attract new entrants to attractive markets and leave low-growth businesses. Because of this tendency, companies that have provided high growth in the past may prove to be inferior future investments. Past financial attributes cannot be relied upon to predict future returns. The investor should integrate a rigorous valuation model into the share selection procedure so that estimates of future growth and profitability can be used to make an estimate of expected returns.Dit blyk dat daar 'n algemene mening onder beleggers bestaan dat groeiende maatskappye en groeiende effekte een en dieselfde is. Die doel van hierdie ondersoek is om te bepaal of die aandele van maatskappye wat op die Johannesburgse Effektebeurs genoteer word en wat 'n hoe groei toon, hoer opbrengste gelewer het gedurende die tydperk 1974-88. Die empiriese bevindings dui daarop dat hoegroeimaatskappye onderpresteer, omrede beleggers hul toekomstige groei en toekomstige opbrengste oorskat, met die gevolg dat hul aandele oorgewaardeerde prysverdienste-verhoudings toon. As gevolg hiervan strek dit tot nadeel van die belegger as die uitslae nie aan die verwagtings voldoen nie. Die hipotese word gemaak dat 'n bewussynsvooroordeel moontlik daarvoor verantwoordelik is dat groei-aandele foutiewelik as aandele van groeiende maatskappye geindentifiseer word. Maatskappy-uitslae het die neiging om terug te keer tot die gemiddelde, na gelang die onderliggende ekonomiese kragte nuwe deelnemers na aantreklike markte lok, weg van laegroeimarkte. As gevolg van die neiging mag maatskappye wat in die verlede hoe groei getoon het, swak toekomstige beleggings wees. Daar kan dus nie op voormalige finansiele kenmerke vertrou word om toekomstige opbrengste te voorspel nie. Die belegger behoort 'n streng skattingsmodel in sy keuse van effekte te integreer sodat skattings van toekomstige groei en winsgewendheid gebruik kan word om 'n skatting van verwagte opbrengste te maak.

 Artículos similares

       
 
Naveed Ahmad, Aqeel Ahmad and Irfan Siddique    
The burgeoning tourism and hospitality industry is plagued by numerous challenges that pose significant hurdles to its long-term success and sustainability. These challenges encompass a range of factors, including fierce competitive convergence, rapid ob... ver más

 
Bojan Moric Milovanovic, Mirjana Grcic Fabic and Vjekoslav Bratic    
The beneficial relationship of entrepreneurial orientation with performance has been extensively acknowledged in the literature. However, empirical evidence is not straightforward and requires consideration of the interplay of different variables, contex... ver más

 
Marija Miric,Jelena Nikolic,Dejana Zlatanovic     Pág. 001 - 014
Ensuring a workforce is up to date on the latest trends in a rapidly changing business environment is one of the main challenges facing modern companies. To achieve long-term profitability and encourage innovation, they tend to constantly improve employe... ver más

 
Duarte Pimentel and André Pedra    
This paper aims to explore differences in personality traits, focusing on the levels of primary psychopathy, between formal leaders of family and non-family companies as well as assessing differences in the job satisfaction levels of their employees. Mor... ver más

 
Khalid Abbas, Ahmed Eltweri, Muhammad Kamran Nawaz and Zafar Ali    
The aim of this study is to provide an examination of the factors that have a bearing on KSB, based upon attitudes amongst academics in developing countries, using a particular focus upon academics within the University of Baghdad. With the research stud... ver más