The Relationship between the Stock Prices and Financial Ratios: Evidence from the Prague Stock Exchange and the Polish Stock Exchange

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F18%3A00011082" target="_blank" >RIV/47813059:19520/18:00011082 - isvavai.cz</a>

Výsledek na webu

<a href="http://aak.cms.opf.slu.cz/clanek/458" target="_blank" >http://aak.cms.opf.slu.cz/clanek/458</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Relationship between the Stock Prices and Financial Ratios: Evidence from the Prague Stock Exchange and the Polish Stock Exchange

Popis výsledku v původním jazyce

Stock prices and their fluctuations are analyzed by investors and analytics due to the possibility of achievement the capital earnings. Many variables can affect development of the stock prices; the main categories are macroeconomic factors, industrial variables, and company characteristics. This paper is focused on company characteristics that reflect success of business activities of individual companies. The object of the paper is to investigate the existence of a relationship between selected financial ratios and stock prices of selected manufacturing companies listed on the Prague Stock Exchange and the Polish Stock Exchange. The semi-annual data is analyzed over the 2006 - 2017 period. The long-term relationship between the selected financial ratios and stock prices is examined by using the Johansen cointegration test. The existence of short-term cointegration linkages is analyzed using the Vector Error Correction Model (VECM). The findings show that there are sporadic relationsh ips between the stock prices and financial ratios. It seems that investors could be interested in macroeconomic factors, industry variables or they do not have a relevant education to evaluate the financial information.

Název v anglickém jazyce

The Relationship between the Stock Prices and Financial Ratios: Evidence from the Prague Stock Exchange and the Polish Stock Exchange

Popis výsledku anglicky

Stock prices and their fluctuations are analyzed by investors and analytics due to the possibility of achievement the capital earnings. Many variables can affect development of the stock prices; the main categories are macroeconomic factors, industrial variables, and company characteristics. This paper is focused on company characteristics that reflect success of business activities of individual companies. The object of the paper is to investigate the existence of a relationship between selected financial ratios and stock prices of selected manufacturing companies listed on the Prague Stock Exchange and the Polish Stock Exchange. The semi-annual data is analyzed over the 2006 - 2017 period. The long-term relationship between the selected financial ratios and stock prices is examined by using the Johansen cointegration test. The existence of short-term cointegration linkages is analyzed using the Vector Error Correction Model (VECM). The findings show that there are sporadic relationsh ips between the stock prices and financial ratios. It seems that investors could be interested in macroeconomic factors, industry variables or they do not have a relevant education to evaluate the financial information.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Acta academica karviniensia

ISSN

1212-415X

e-ISSN

2533-7610

Svazek periodika

XVIII

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

13

Strana od-do

66-78

Kód UT WoS článku

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EID výsledku v databázi Scopus

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