J 2018

The Importance of Financial Ratios in Predicting Stock Price Trends: Evidence from Central European Countries.

PRAŽÁK, Tomáš and Daniel STAVÁREK

Basic information

Original name

The Importance of Financial Ratios in Predicting Stock Price Trends: Evidence from Central European Countries.

Authors

Edition

International Journal of Trade and Global Markets, 2018, 1742-7541

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50206 Finance

Country of publisher

Switzerland

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

Organization unit

School of Business Administration in Karvina

DOI

Keywords in English

Debt ratios; Financial ratios; Generalised method of moments; GMM; Microeconomic factors; Rentability; Stock prices; Visegrad Group

Tags

International impact, Reviewed
Změněno: 21/4/2021 10:04, Miroslava Snopková

Abstract

V originále

This study examines the effect of primary microeconomic factors on the stock prices of select financial and energy industry companies listed and traded on the Central European Exchanges (Budapest Stock Exchange, Prague Stock Exchange, Bratislava Stock Exchange, or Warsaw Stock Exchange). Microeconomic factors are based on the financial situations at various companies. Financial ratios, gained from the financial statements of the individual companies, are used for the analysis. In general, the paper confirmed that profitability and debt ratios are the most important business factors from the perspective of the impact on stock prices. The existence of the relationship between stock prices and financial ratios is tested with the generalised method of moments (GMM) during the period of 2006 to 2016.