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AN EMPIRICAL ANALYSIS OF BEN GRAHAM'S NET CURRENT ASSET VALUE RULE
Author(s) -
Vu Joseph D.
Publication year - 1988
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1988.tb00787.x
Subject(s) - asset (computer security) , economics , net asset value , value (mathematics) , event (particle physics) , econometrics , event study , financial economics , computer science , mathematics , finance , statistics , history , physics , computer security , quantum mechanics , context (archaeology) , archaeology
This paper presents evidence that the net current asset value rule developed by Ben Graham in 1930 is still profitable in the 1970s and early 1980s. The abnormal gain is not due to future mergers because both the merged and nonmerged subsamples have positive and statistically significant returns in the post‐event period.