Work

The Relationship Between Financial Ratios and the Stock Prices of Selected European Food Companies Listed on Stock Exchanges

Year: 2019

Type: article

Abstract: Stock prices can be influenced by many factors. It is possible to determine two categories of variables that can affect stock prices: macroeconomic and microeconomic variables. The paper is focused on microeconomic factors, specially financial ratios that reflect business activities of the companies. According to the study of Drummen and Zimmermann (1992) the individual characteristics of companies affect up to 50 % of stock prices. The object of this paper is to examine the relationship between selected financial ratios and the stock prices of food companies listed on selected European Stock Exchanges. Time series on annual frequency are used to examine the relationship between stock prices of selected companies and financial ratios with using the Generalized Method of Moments (GMM). Based on previous research we expect to find some linkages especially between stock prices and the profitability ratios.

Source: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

DOI: 10.11118/actaun201967010299

Authors: Marie Ligocká, Daniel Stavárek

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

Funder: Slezská Univerzita v Opavě

Award: G8923524774

OpenAlex ID: W2919364765

FWCI: 6.884

Cites: 13

Cited by: 40

Related to: 10