KEY FUNDAMENTAL FACTORS AND THE LONG RUN STOCK PRICE CHANGES

Global Business and Finance Review

M Ariff¹  Walayet Khan² 

[1] Monash University;University of Evansville;

关键词: stock price;    industrial firms;    share price;    joint-effect model;   

DOI  :  

来源: DOAJ

【 摘 要 】

This paper reports new findings on the joint effect six theory-suggested fundamental variables have on share price changes o f industrial firms . The novelty in this paper is identifying the joint effect multiple factors exert in the long run on share prices. The highly sign[ficant joint factors are dividend yield!i, earnings, leverage and.firm size. which are var.iables widely acknowledged in.finance theories and in practice as price relevant factors. These four factors explain three-fzfth ofthe variation in the US share prices. However, two theory-suggestedfac:Lors namely asset growth and payout ratio appears to be insignificant in our tests. This is a preliminary ~·tudy employing a limited sample ofhomogeneous firms to establish reliable findings using a newjoint-effect model.

【 授权许可】

Unknown