J 2019

The Relationship between Financial Ratios and Stock Prices of Selected European Food Companies listed on Stock Exchanges

LIGOCKÁ, Marie and Daniel STAVÁREK

Basic information

Original name

The Relationship between Financial Ratios and Stock Prices of Selected European Food Companies listed on Stock Exchanges

Authors

LIGOCKÁ, Marie (203 Czech Republic, guarantor, belonging to the institution) and Daniel STAVÁREK (203 Czech Republic, belonging to the institution)

Edition

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2019, 1211-8516

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50202 Applied Economics, Econometrics

Country of publisher

Czech Republic

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

RIV identification code

RIV/47813059:19520/19:A0000078

Organization unit

School of Business Administration in Karvina

Keywords in English

Financial ratios; food industry; companies; Europe; stock price; GMM
Změněno: 22/4/2020 13:37, Ing. Petra Skoumalová

Abstract

V originále

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.