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Revsine Research Paper

Top professors from Harvard Business School and University of Toronto cite David Trainer’s “Modern Tools for Valuation” in Expected Stock Returns Worldwide: A Log-Linear Present-Value Approach”

The report studies expected return proxies derived from a log-linear present value framework vs. expected return proxies based on standard factor models. The results show that the log-linear present-value framework offers an accounting-based framework for the estimation of expected returns across international markets.

  • Charles C.Y. Wang – Glenn and Mary Jane Creamer Associate Professor of Business Administration at Harvard Business School
  • Akash Chattopadhyay – Assistant Professor of Accounting at University of Toronto
  • Matthew R. Lyle – Assistant Professor of Accounting Information and Management and the Lawrence Revsine Research Fellow at Kellogg School of Management

This article originally published on March 2, 2018.

Disclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style, or theme.

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Accepted by Haresh Sapra. This paper is the final Registered Report resulting from the Registration-based Editorial Process (REP) implemented by JAR for its 2017 conference. Details of the REP are available here: = en&hash = B64B8F1D368D8300BC83898C7E5CFD0557E71312. The accepted proposal, the Internet appendix on the data collection procedures, and the scandals and regulation data for this registered report are available here: We appreciate the helpful comments of two anonymous referees, the many country experts, Sudipta Basu, Christian Leuz, and workshop participants at the 2017 JAR conference, Northwestern University, and University of Zurich. We thank Linda Aikala, Péter Aleksziev, Inês Bastos, Wilbur Chen, Joris de Kok, Manuel Engelmann, Rita Estêvão, Christos Grambovas, Seung Youb Han, Selina Hartmann, Jonathan Hori, Elisabetta Ipino, Keita Kana, Florian Klassmann, Benjamin Miller, Siladitya Mohanti, Andreea Moraru Arfire, Victor Musuku, Varun Sharma, Stefan Romeijn, Ido Spector, Josep Maria Vilà Calopa, Gabriel Voelcker, Halina Waniak, and Melody Xu for their excellent research assistance. We gratefully acknowledge financial support by Wharton's Global Initiatives Research Program (Luzi Hail), the Institute for New Economic Thinking (Ahmed Tahoun), and the Lawrence Revsine Research Fellowship of the Kellogg School of Management at Northwestern University (Clare Wang).

This article has been accepted for publication and undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the Version of Record. Please cite this article as