Mondal & Imran (2011) examined the determinants of stock price by focusing on the Dhaka Stock Exchange (DSE) as a case study. Their study analyzed the factors that may have influence on determining the share price of some companies listed in DSE. Also analyzed, was the influence of liquidity, leverage, profitability, growth, size of the firm and dividend rate on market price per common share. Outcome of the study indicate that both qualitative and quantitative factors affect stock price. Qualitative factors identified by this study included company goodwill; unexpected circumstances; analysts’ report; technical influence; market sentiments; change in government policy; hype; company announcements; AGM; print and electronic media; international …show more content…
The study’s focus was on Fast Moving Consumer Goods (FMCG) companies and the price level based approach was used to determine the extent to which stock prices were influenced by the variables selected for the study. Data with respect to a cross section of FMCG firms listed on the floor of the Bombay Stock Exchange (BSE) over the period 2001-2010 was obtained and analyzed. The results obtained from the study indicate that corporate financial variables were value relevant since according to Dawar (2012), fundamental variables play an important role in stock pricing in Indian FMCG companies. Accordingly, Dawar (2012) further maintained in his findings that dividend and investment policies respectively were value relevant since they aided stakeholders in the area of providing necessary signals regarding the market information not contained in accounting …show more content…
The study covered a period of 5 years (2005-2009). Using a pooled cross-sectional data, the results from the regressions analysis evidenced that the value relevance of earnings and book value were below average. According to Pathirawasam (2013), the results from this study further revealed that value relevance of ownership concentrated firms was higher than that of ownership non-concentrated firms. Interestingly, earnings and book value per share indicated higher value relevance for larger firms than for smaller firms (Pathirawasam, 2013). Also, contrary to the findings of prior studies, Pathirawasam (2013), maintained that book value was more value relevant than earnings in Sri
A slightly low return on assets than the previous year shows that the profitability of the assets of the company falls down a little. Shareholders consider financial statements to make decisions regarding buying and selling their shares. They are also concerned about the maximization of their wealth. They take into account the profitability by showing interest in return on sales or net profit margins.
Earnings per share increase can attraction and detention a part of investors. Current ratio and the quick ratio are dangerous. Because these two ratio still very
While Tan 's essay is mainly composed of personal anecdotes, she is still able to bring attention to subject and issues that are relatable to groups of people besides herself. Each personal anecdote used in the essay addresses different problems stemming from language, all of which are identifiable by various groups of people. For instance, her anecdotes regarding the stockbroker and CAT scan incident can be easily related to by any person or persons who have struggled with any type of language barrier. The examples connect to the immense group of people in the United States who speak a variation of English that may be considered "imperfect." Through these two anecdotes, Tan is able to reach out and connect to anyone in her audience who has
In this category the Boston Beer Co. results are similar to Heineken, and much better than the financial ratios of Anheuser Bush. Comparing the profitability ratios, we can see that while the profit margin lays between the profit margins of Heineken and Anheuser Bush, the return on assets and equity is much higher than the returns of any of the two competitors. And all the profitability ratios for Boston Beer Co. are increasing over the last five years. The market values ratios measure how much investors are willing to pay per $1 of earnings (Price Earnings Ratio) and compare the market value of the investment to its historical cost (Market to Book Ratios). Both of these ratios are higher for the Boston Beer Co. and so is the Earning per Share Ratio.
they are related to equity in terms of ownership because stocks are available to the public providing an initial public offering and continues to be released as secondary or seasoned offerings (Adomait and Maranta 150). Because of this, a company can increase it’s equity by selling it’s ownership in the stock exchange market.(Adomait and Maranta 150). Also, financial markets have a lot to do with efficiency. When a financial market is efficient, no company has any absolute advantage, everybody involved should be knowledgable of everything here is to know because the prices should reflect the common knowledge available about the product(Adomait and Maranta 156).
BLACK AND DECKER CASE REPORT Prepared by: Gizem Yalcin Rikdeep Samra Ipek Kucuk Ali Gencalioglu Baris Genc 9 October 2014 1 BLACK & DECKER CASE WRITE-UP Executive Summary Although B&D has maintained the top market share position in the 'Consumer' and 'Industrial' segments and is a highly respected company in power tools, its market share merely adds up to a 9% in ‘Tradesmen’ where their biggest competitor Makita has 50%. Regardless the high quality, reasonable price and high reputation, B&D has negative brand associations. Due to low segment share, lack of profitability and low margins, top managers set goals for the sake of B&D’s future. The quantitative goals of the company involve doubling market share to 20% in 3 years, most being Makita's
After determining the market price of the common stocks (UAA = $29.05, UA = $25.17) and dividing them by the diluted earnings per share (UAA = $0.45, UA = $0.71), the price-earnings ratios could be calculated. UAA has a price-earnings ratio of 64.55 and UA has a price-earnings ratio of 35.45. In terms of the P-E ratio, the lower the number, the better. UA has a slightly negative P-E ratio and UAA has a very negative ratio.
Public companies may quite appropriately wish to focus investors’ attention on critical components of quarterly or annual financial results in order to provide a meaningful comparison to results for the same period of prior years or to emphasize the results of core
As shown by the contradiction between share price growth and net profit decline, investor confidence in future returns is already high. Moreover, P/E ratio is usually very high for high-growth companies. Therefore, using only the P/E ratio to evaluate a company's performance may easily give a wrong impression of overvaluation in high-growth companies. Other important factors like the company’s long-term strategic vision should also be considered, as well, in their market valuation.
After the economical boom through the 1920s, the USA suffered from scandalous events. The Wall Street Crash in 1929 was due to a damaged and shattered economy. One of the main factors that caused it was speculation. However, it wasn't the only one. Many factors damaged economy along speculation and led to the disastrous crash.
Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the
Low valuation ratios of these two companies indicated that their stock price might not be
Weaknesses However, there are some limitations in the use of the project’s results. Our project is focusing on the Hong Kong banking industries. Therefore, the results cannot be used in other industries or areas, because of the different situations and environments. In addition, the regression results are built on the basic dividend theories.
The paper will calculate the financial ratios of company that will be interpreted with the implications of ratios. Moreover, the paper will describe the indicators of fraudulent reporting. Discussion Purpose of Income Statement It is also called profit and loss statement or income or expense statement. The main purpose of income statement is to indicate managers and investors whether the organisation was cost-effective
Value investing is a fundamental analysis approach formulated by Graham and Dodd (1934) that focuses on companies whose share prices do not reflect their intrinsic worth. A value investor buys a stock if its price is low relative to some fundamental benchmarks such as earnings, cash, dividends, or book value (Bartov and Kim, 2004), and expects that the market will properly recognize the company’s value and adjust the stock price accordingly. Typically, value stocks have attributes such as low ratios of price-to-earnings (P/E) and price-to-cash flow (P/C), high book-to-market equity (B/M) or high dividend yields (Lakonishok et al., 1994; Fama and French, 1998). Growth investing, on the other hand, focuses on companies that feature signs of above-average