Article thumbnail
Location of Repository


By stanley c. w. salvary


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.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.

OAI identifier:

Suggested articles


  1. (1976). A Model of Market Power, Valuation and the Firm's Returns."
  2. (1990). A Scott-Type Regression Test of the Dividend Ratio Model." Review of Economics and Statistics:
  3. (1985). Accounting: A Library of Quantifications.
  4. (1989). An Analytical Framework for Accounting Theory. McQueen Accounting Monograph Series,
  5. (1968). An Empirical Evaluation of Accounting Income Numbers."
  6. (1987). Earnings Innovations, Earnings Persistence, and Stock Returns."
  7. (1982). Financial Accounting and Finance Valuation: A Market Expectations Information Approach." Paper Presented at the Eastern Finance Association Eighteenth Annual Meeting
  8. (1970). Financial Structure and The Theory of Production."
  9. (1978). Monetary Policies and the Economy: The Transmission Mechanism."
  10. (1997). New York; and other major cities:
  11. (1992). Recoverable Cost: The Basis of a Descriptive Theory of Financial Accounting Measurement." Accounting Enquiries
  12. (2005). Reproduction permission granted by SEF at
  13. (1993). Statement of Financial Accounting Standards 115: Accounting for Certain Investments in Debt and Equity Securities. Financial Accounting Standards Board.
  14. (1988). Stock Prices, Earnings, and Expected Dividends."
  15. (1975). Structural Planning Under Controllable Business Risk."
  16. (1979). The Association between Unsystematic Security Returns and the Magnitude of Earnings Forecast Errors."
  17. (1970). The Cost of Capital and the Structure of the Firm."
  18. (1968). The Information Content of Annual Earnings Announcements."
  19. (1972). The Informational Content of Quarterly Earnings: An Extension and Some Further Evidence."
  20. (1984). The Intraday Speed of Adjustment of Stock Prices to Earnings and Dividend Announcements."
  21. (1985). The Present Value Model of Stock Prices: Regression Tests and Monte Carlo Results." Review of Economics and Statistics
  22. (1978). The Technology of Risk and Return." American Economic Review
  23. (1968). The Theory of the Firm: Production, Capital and Finance.
  24. (1992). The Theory of Value and Earnings, and an Introduction to the Ball-Brown Analysis."
  25. (1993). The Usefulness of Accounting-Based Returns in Differentiating Securities." Accounting Enquiries
  26. (1981). Tobin's q Ratio and Industrial Organization."
  27. (1986). Variance Bounds Tests and Stock Price Valuation Models.”

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.