The Accounting Variable and Stock Price Determination

Studies in Economics and Finance, Vol. 18, No. 2, pp. 26-61, Spring 1998

29 Pages Posted: 15 Apr 2005

See all articles by Stanley C.W. Salvary

Stanley C.W. Salvary

Canisius College - Department of Accounting

Abstract

Several tests have been conducted to determine which valuation model best fits stock price data. Given very little success, those studies suggest the need for a clear understanding of the market process of stock price determination. This paper advances the concepts of product costing and product pricing, which pertain to financial accounting valuation and the stock market price determination, respectively. This research effort presents a workable hypothesis of stock price determination.

Keywords: stock valuation models, fundamental value, committed finance, financial product costing, financial product pricing. 'investment base', risk/return preferences, sequential expectations adjustment model, heterogeneous expectations, economic space

JEL Classification: M41, D46, M21, D84

Suggested Citation

Salvary, Stanley C.W., The Accounting Variable and Stock Price Determination. Studies in Economics and Finance, Vol. 18, No. 2, pp. 26-61, Spring 1998, Available at SSRN: https://ssrn.com/abstract=689262

Stanley C.W. Salvary (Contact Author)

Canisius College - Department of Accounting ( email )

Buffalo, NY 14208
United States

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