The Price of Stocks in Latin American Financial Markets: An Empirical Application of the Ohlson Model

The International Journal of Business and Finance Research, v. 6 (4) p. 73-85

14 Pages Posted: 29 Jan 2013

See all articles by Pedro Martínez

Pedro Martínez

Instituto Tecnolo´gico y de Estudios Superiors de Monterrey

Diego Prior

Autonomous University of Barcelona

Josep Rialp

Autonomous University of Barcelona - Department of Business Administration

Date Written: 2012

Abstract

The emergence of the Latin American market and its growing importance attract global investors to this region with an eye on profit opportunities. This attraction demands a reliable instrument for the calculation of future stock prices of regional companies. This study examined the reliability and validity of the Ohlson Model to predict Latin American stock prices through an empirical application of a panel data analysis of 1,112 companies from this region with data from 2002 to 2009. The findings identified the countries in Latin America where the model can be used successfully.

Keywords: Ohlson Model, Latin American, Stock Prices

JEL Classification: G12

Suggested Citation

Martínez, Pedro and Prior, Diego and Rialp, Josep, The Price of Stocks in Latin American Financial Markets: An Empirical Application of the Ohlson Model (2012). The International Journal of Business and Finance Research, v. 6 (4) p. 73-85, Available at SSRN: https://ssrn.com/abstract=2149183

Pedro Martínez (Contact Author)

Instituto Tecnolo´gico y de Estudios Superiors de Monterrey ( email )

Av. Eugenio Garza Sada Sur 2501
Tecnológico, Monterrey, Nuevo León 64849
Mexico

Diego Prior

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Josep Rialp

Autonomous University of Barcelona - Department of Business Administration ( email )

Campus Bellaterra, Edifici B.
Bellaterra (Barcelona), 08193
Spain

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