Key Determinants of Bank Stock Valuation

This work is devoted to the problem of investigating the key determinants of bank stock valuation. The work is divided into three parts. In the first part, the previous research papers concerning this problem are discussed. In the second part of the work main approaches of bank valuation are described. The description of external and internal factors is provided. Then, we provide the information about the methodology, which include the panel data models, statistical tests, our data and main hypotheses. After that we carry out the estimation of chosen model on our sample. The sample included banks from USA and Russia. The result of the work provides information about the key financial indicators and macroeconomic factors that have significant impact on bank stock valuation. These results may be very useful for investors in order to succeed in decision-making process and for the banking managers in order to find the best way of implementation the strategy of the bank.