Modeling dividends, earnings, and book value equity: An empirical investigation of the ohlson valuation dynamics
Sasson Bar-Yosef, Jeffrey L. Callen, Joshua Livnat
Review of Accounting Studies · 1996 · Volume 1 · Issue 3
Abstract
This study empirically investigates the information dynamics of the Ohlson valuation framework. Single-period lagged linear autoregressive relationships among dividends, earnings, and book values of equity are estimated for a sample of stochastically stationary firms and are found not to support the valuation framework. This study further extends the empirical analysis to a multilagged vector autoregressive linear information system. Consistent with the Ohlson valuation framework,the past time seriesof all three variables are generally found to be relevant for firm valuation. This study brings into question empirical research utilizing the Ohlson framework that presupposes a single-period lagged information dynamic.
Keywords
Time Series, Information System, Empirical Research, Empirical Analysis, Empirical Investigation
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