Factors Influencing Brazilian Value Investing Portfolios

Holloway, Pedro; Rochman, Ricardo Ratner; Laes, Marco Antonio

doi:10.2139/ssrn.2358185

Cited by 4 publications

(4 citation statements)

References 7 publications

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“…Using the criterion of the authors’ mentioning that their work belongs to a particular current of thought, the papers that document explicitly Graham’s approach are these (8 out of 17): “A framework for value investing” (Chee et al , 2013); “Applying Joel Greenblatt’s value investing strategy to the Johannesburg Stock Exchange” (Lambrechts and Roos, 2017); “Fact, fiction and value investing” (Asness et al , 2015); “ Factors influencing Brazilian value investing portfolios” (Holloway et al , 2013); “Facts about formulaic value investing” (Ribando and Sloan, 2017); “Graham and Dodd: A perspective on its past, present, and possible future” (Calandro, 2014); “value investing: Smart beta versus style indexes” (Hsu, 2014); and “value investing’s compatibility with Austrian economics–Truth or myth?” (Rapp et al , 2017).…”

Section: Resultsmentioning

confidence: 99%

Strategic approaches to value investing: a systematic literature review of international studies

Battisti

Miglietta

Salvi

et al. 2019

RIBS

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Purpose This paper aims to present a systematic literature review (SRL) on the topic of value investing (VI) in the international studies. The purpose of this study is twofold: to highlight the strategic approaches followed in recent contributions in the field of finance connected to the main approaches of the pioneering authors (Graham and Dodd, 1934; Fisher, 1958; Fama and French, 1992; Lakonishok, Shleifer and Vishny, 1994) who have investigated VI; and to analyse whether scholars follow a qualitative approach in studying VI that enables companies to achieve greater competitive advantage.. Design/methodology/approach From a SLR of peer-reviewed papers covering the period 2007-2017, 45 papers were identified and analysed to present a better understanding of the adopted approaches and methodologies compared to the pioneering contributions on the topic. Findings This search found that 24 out of 45 papers specifically analyse VI. In particular, this work highlights 20 out of 24 papers that directly or indirectly, follow the approaches of “Graham and Dodd” or “Lakonishok, Shleifer and Vishny”/“Fama and French”, and 4 out of 24 that do not follow one of the main approaches identified. After the descriptive findings of the review, this paper highlights that none of the contributions takes into account qualitative analysis of a company to define whether the firm itself does or does not have a sustainable competitive advantage. Practical implications This paper suggests to international investors who intend to invest in one or more markets to revise the basic principles of VI, while also considering qualitative elements related to strategic aspects and behavioural finance. In particular, this study suggests that the investor introduce a qualitative analysis to allocate equity in value firms with a lasting competitive advantage. Originality/value This study contributes to advance the knowledge of VI from a theoretical point of view. To the best of the authors’ knowledge, it is the first study that systematises the international literature on this topic by highlighting the main contributions written in the period 2007-2017, analysing the development of the pioneering strategic approaches and examining their method of assessing firms.

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Section: Resultsmentioning

confidence: 99%

Strategic approaches to value investing: a systematic literature review of international studies

Battisti

Miglietta

Salvi

et al. 2019

RIBS

View full text Add to dashboard Cite

show abstract

“…The origin of this methodology is the purchase of stocks at a low price concerning intrinsic value , that is, the concept of value investing that includes the components that make up fundamental analysis ( Holloway et al., 2013 ) and was formulated from Columbia University by Graham & Dodd (1996) in their book "Security Analysis."…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Formalization of a new stock trend prediction methodology based on the sector price book value for the Colombian market

Leonardo

Eduardo

María

et al. 2022

Heliyon

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“…Investment is what someone does with the savings to increase over time, including the commitment of current resources to deriving greater resources in the future. Acquisition of such assets primarily increases the bank's size (Holloway, Rochman, & Laes, 2013) and financial performance, such as efficiency and profitability (Lee, Liang, & Huang, 2013). Investing activities cover a funding commitment to obtain an asset or assets group in the future concerning the ownership of various assets derived from current revenues, even though sensitive to cash flow because they cannot expect to withstand financial risks every time (Dasgupta, Noe, & Wang, 2011).…”

Section: Cash Flows From Investing Activitiesmentioning

confidence: 99%

Highlighting Differences in Cash Flow from Investing Activities and Capital Adequacy Ratio Relationship between Indonesian and Malaysian Commercial Banks

Samryn¹

2022

ASS

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This study compares the impact of Cash Flow from Investing Activities (CFI) on the Capital Adequacy Ratio (CAR) between Indonesian and Malaysian commercial banks. The study uses time-series data from the countries' big-five banks from 2009 to 2013. This study engages the regression model to measure the CFI's impact on CAR and then applies a Chow test to compare the discrete regression output between the two countries. The statistical tests reveal that the CFI of Indonesian banks correlated negatively with the CAR, while Malaysian banks showed a positive correlation. Consistent with the correlations, the influence of CFI on CAR in both countries is equally significant. By a Chow test, this study concluded that the CFI's impact on CAR significantly differs between the banks in the countries. From the literature perspective, the CFI and CAR relationship of Malaysian banks is closer to the findings of previous detached studies. The figures indicate that nowadays, Malaysian banking harvests cash inflow from their past investments. Otherwise, the Indonesian banks portray the ongoing spending for long-term investment during the recent five years. This preference results in a consistent decrease in CFI when the CAR moves upward. Departing from the existing differences, to optimize the CFI and CAR relationship, this study suggests the CFI and CAR equilibrium formulation for banks to avoid cash shortages and failure to earn interest due to capital buffer retaining to maintain a high ratio of capital adequacy.

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Factors Influencing Brazilian Value Investing Portfolios

Cited by 4 publications

References 7 publications

Strategic approaches to value investing: a systematic literature review of international studies

Strategic approaches to value investing: a systematic literature review of international studies

Formalization of a new stock trend prediction methodology based on the sector price book value for the Colombian market

Highlighting Differences in Cash Flow from Investing Activities and Capital Adequacy Ratio Relationship between Indonesian and Malaysian Commercial Banks

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