A mixed frequency approach for stock returns and valuation ratios

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 187
Issue: C

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We employ a Mixed-Frequency VAR to study the effect of four valuation ratios (the price–dividend ratio, the price–earnings ratio, the Cyclically Adjusted Price Earnings Ratio and the Total Return Cyclically Adjusted Price Earnings Ratio) on the US stock market. We quantify the interaction between high and low frequency data. We show that all valuation ratios (observed at a monthly frequency) significantly affect stock market returns (observed at a daily frequency) at both long and short horizons.

Technical Details

RePEc Handle
repec:eee:ecolet:v:187:y:2020:i:c:s0165176519304355
Journal Field
General
Author Count
3
Added to Database
2026-01-25