scholarly journals Liquidity and solvency of a company and the rate of return – an analysis of the Warsaw Stock Exchange

2020 ◽  
Vol 6 (53) ◽  
pp. 199-220
Author(s):  
Justyna Zalewska ◽  
Natalia Nehrebecka
Keyword(s):  
Least Squares Method ◽  
Stock Exchange ◽  
Financial Ratios ◽  
Rate Of Return ◽  
Rates Of Return ◽  
Developed Country ◽  
Return On Equity ◽  
Warsaw Stock Exchange ◽  
Capm Model ◽  
The Impact

AbstractThe purpose of the article is to analyse the impact of various financial ratios used to evaluate a company’s liquidity and solvency on the rates of return on the shares of companies listed on the Warsaw Stock Exchange. In the context of developing countries, the relationship between liquidity and solvency on the one hand and the return on equity on the other is still not clear. Poland is the most economically developed country in Central and Eastern Europe. A thorough analysis is necessary to take appropriate action and introduce adequate regulations in the country, as well as to create the foundation for researching other economies in this region. In addition, this article includes new estimators that have not yet been taken into account but that may affect the rates of return, which will contribute to the literature on the subject and to the development of knowledge on the volatility of returns on shares. In the study, we have calculated the time-varying beta coefficients of the capital asset pricing model (CAPM) model and analysed portfolios based on three liquidity ratios and four solvency ratios, which were computed using the CAPM, Fama–French and Carhart models. The empirical study described in the article focuses on companies listed on the Warsaw Stock Exchange in the period from 1 January 1999 to 30 June 2013. Regressions were estimated by the least-squares method and by quantile regression. Based on the results, it was found that listed companies at risk of bankruptcy are able to meet their short-term liabilities. Liquidity and solvency measured by financial ratios significantly affect the sensitivity of the rate of return on shares to the risk factors expressed in the CAPM, Fama––French and Carhart models.

scholarly journals PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM 10 BANK TERKEMUKA DI INDONESIA

2017 ◽  
Vol 19 (2) ◽  
pp. 179
Author(s):  
Indra Satria ◽  
Iha Haryani Hatta
Keyword(s):  
Central Asia ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Capital Adequacy Ratio ◽  
The Impact

Penelitian ini bertujuan untuk mengetahui dampak rasio keuangan terhadap harga saham sepuluh bank terkemuka di Indonesia. Penelitian ini menggunakan metode purposive sampling untuk sepuluh bank yang go public di Bursa Efek Indonesia periode 2013-2014 dengan kriteria berikut : (1) memiliki aset dengan jumlah terbesar pada tahun 2013-2014 (2) memiliki informasi rasio keuangan pada tahun 2013-2014 (3) tidak terjadi pemecahan saham pada tahun 2013-2014 (4) hasil pengolahan data statistiknya memenuhi uji asumsi klasik. Berdasarkan kriteria itu, maka jumlah bank yang terpilih adalah Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Tabungan Negara (Persero) Tbk dan Bank International Indonesia Tbk. Variabel tidak bebas dalam penelitian ini adalah harga saham, sementara variabel terikat adalah Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data dianalisis dengan menggunakan analisa regresi linier berganda. Hasil penelitian menunjukkan bahwa variabel bebas (LDR, NPL, CAR, and ROE) secara simultan berpengaruh signifikan terhadap harga saham. Secara parsial, LDR, CAR dan ROE berpengaruh signifikan terhadap harga saham. Sementara, NPL tidak berpengaruh terhadap harga saham.This research is to determine the impact of financial ratios on the stock price of ten leading banks in Indonesia. This research using a purposive sampling method for the ten banks that listed on the Indonesian Stock Exchange in the years 2013-2014 with the following criteria : (1) has assets with the largest number in the years 2013-2014 (2) has information about financial ratios in the years 2013-2014 (3) a stock split does not occur in the years 2013-2014 (4) the results of the processing of statistical data meets classical assumption. Based on the criteria, the then banks selected are Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Negara Indonesia (Persero) Tbk and Bank International Indonesia Tbk. The dependent variable in this research is the stock price, while the dependent variable are Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data were analyzed using multiple linear regression analysis. The results showed that the independent variables (LDR, NPL, CAR, and ROE) simultaneously significant effect on the stock price. Partially, LDR, CAR and ROE have a significant effect on the stock price. Meanwhile, NPL has no effect on the stock price.

scholarly journals The impact of capital structure on the market value of energy sector companies on the example of companies from Poland

2019 ◽  
Vol 108 ◽  
pp. 01007
Author(s):  
Robert Ranosz
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Market Value ◽  
Energy Sector ◽  
Investment Risk ◽  
Return On Assets ◽  
Return On Equity ◽  
Warsaw Stock Exchange ◽  
The One ◽  
The Impact

The focus of this article is to analyse the impact of capital structure on the value of energy sector companies listed on the Warsaw Stock Exchange. The proposed study will cover the last four years, i.e. 2014-2017, in quarterly terms. In addition to the mentioned capital structure parameter, the analysis also covers such indicators as return on equity (ROE) and return on assets (ROA). The study will use multiple regression based on the deltas of the respective parameters describing their changes quarter-to-quarter. The author of this publication assumes that capital structure may have an impact on the value of energy sector companies. The assumption is based on the market phenomenon whereby capital structure seems to reflect to a certain extent the risk incurred by investors: on the one hand, the higher the share of borrowed capital in financing an enterprise’s operations, the higher the risk; on the other hand, the higher the proportion of equity in the financing of corporate operations, the lower the chance for dividends to be paid to investors in the respective companies. Investigating the mentioned phenomenon will make it possible, to a certain extent, to answer the question of whether Polish investors are more willing to accept investment risk in exchange for a higher return on investment or whether they would rather limit investment risk and yield lower profit from the capital invested in a given enterprise.

scholarly journals Stock Prices and the Rate of Return Analysis: The Case of Warsaw Stock Exchange

2018 ◽  
Vol 9 (1) ◽  
pp. 21-34
Author(s):  
Magdalena Jasiniak
Keyword(s):  
Statistical Analysis ◽  
Stock Prices ◽  
Stock Exchange ◽  
Rate Of Return ◽  
Rates Of Return ◽  
Warsaw Stock Exchange

The main aims of this article are to verify whether rates of return might be determined by stock prices and to evaluate low price anomaly on the example of Warsaw Stock Exchange. The author states that cheap assets characterized by nominally lower prices are more attractive to buy and bring higher profits in comparison to assets described as expensive. In order to verify the hypothesis, database of 13789 quotations from 1.07.1999 to 30.12.2013 was created. The sample was divided into three groups – cheap, average, and expensive stocks. Finally, the statistical analysis was conducted using 2924 records including only cheap and expensive units. Statistical analysis confirms that low–priced assets generate higher profits and lower losses.

scholarly journals Cash flow sensitivity of investment: Evidence from the Polish listed companies

2020 ◽  
Vol 7 (54) ◽  
pp. 157-171
Author(s):  
Marian Nehrebecki
Keyword(s):  
Cash Flow ◽  
Least Squares Method ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Monetary Transmission ◽  
Balance Sheet Channel ◽  
Warsaw Stock Exchange ◽  
The Impact

AbstractThe paper focuses on assessment of the sensitivity of investment on cash flow (ICFS) made by listed companies in Poland. Achieving this goal will also involve analysing and drawing conclusions about the balance-sheet channel of monetary transmission. An empirical part uses data from financial statements for Poland derived from Emerging Markets Information Services (EMIS), related to companies listed on the Warsaw Stock Exchange and NewConnect. Estimations were made using the Ordinary Least Squares method with robust standard errors, and results made it clear that cash flow has a positive significant impact, indicating that most companies operate on the imperfect and incomplete market, and with constrained or costly access to external financing. Further, it is found that the impact is significantly strong in the slowdown, as financial constraints are more binding. These results seem to confirm that the balance-sheet channel of monetary transmission is operative in Poland.

scholarly journals The Multifactorial Pastor-Stambaugh model: explaining the impact of liquidity on the rate of return based on the example of the Warsaw Stock Exchange

Equilibrium ◽  
2017 ◽  
Vol 12 (2) ◽  
pp. 211
Author(s):  
Agata Gniadkowska-Szymańska
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Value Added ◽  
Rate Of Return ◽  
Warsaw Stock Exchange ◽  
Incremental Rate ◽  
Finance Theory ◽  
The Impact ◽  
The Relationship

Research background: The liquidity of assets in the financial market is under-stood gener-ally as costs, and the easiest way in which different types of assets can be converted into cash, or to put it simply, sold at the currently available price on the market. For a considerable period of time this category had not been duly considered in the framework of modern finance theory. As a result, a number of basic models constructed within the framework of this theory in its classical form did not include problems with liquidity. This applies to a number of aspects related to liquidity, with one of the most important being the relationship between the liquidity of trading in shares and the results obtained from these rates of return.Purpose of the article: The aim of the article is to determine whether the rate of return on shares increases with the increase in share liquidity and the incremental rate of return on this account decreases with increasing liquidity. The applied re-search methodology is similar to that described by Pastor and Stambaugh (2003). The model used in the empirical study is the expanded model of Fama and Francha (1993) for the liquidity factor.Methods: In this paper I present various factors which will affect the liquidity. The paper will also provide the results of research concerning the relations between spread and stock return on the Warsaw Stock Exchange (WSE). The evidence drawn from WSE stock returns over the period 2004–2012 indicates that Amihuda measure and other variables have a significant effect on stock return using the multifactorial Pastor-Stambaugh.Findings & Value added: In the case of the Polish market, it can be stated that in the analysis based on the Pastor-Stambaugh model not all the variables included in this model are statistically significant. However, directional parameters associated with liquidity risk were statistically significant in all analyzed periods, which allows us to confirm the hypothesis that liquidity has a significant influence on the rate of return on shares listed on the Stock Exchange in Warsaw.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals Does Financial Performance Matter? Evidence on the Impact of Liquidity and Firm Size on Stock Return in Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 546
Author(s):  
Mochammad Chabachib ◽  
Ike Setyaningrum ◽  
Hersugondo Hersugondo ◽  
Intan Shaferi ◽  
Imang Dapit Pamungkas
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Significant Relationship ◽  
Stock Return ◽  
Stock Exchange ◽  
Mediating Effect ◽  
Return On Equity ◽  
Stock Investment ◽  
Equity Ratio ◽  
The Impact

In the modern era, stock investment can attract domestic investors or foreign investors. The objective is to invest their funds at the capital market that expect higher stock returns. The study aims to analyze factors that can affect stock returns and know the mediating effect of return on equity. The object of this research is the property and real estate sector that is listed on the Indonesia Stock Exchange from 2013 to 2018. This research used debt to equity ratio, current ratio, total asset turnover, firm size as independent variables and stock returns as dependent variables. Path analysis is used as reseach method tools with SMART PLS.The result says that debt to equity ratio and return on equity has a positive significant relationship with stock return, meanwhile firm size has a significant negative significant relationship with stock returns. Furthermore, return on equity can mediate the relationship between debt and equity ratios to stock returns.

scholarly journals The Impact of Acquisition on Stock Value in Case of Warsaw Stock Exchange

2019 ◽  
Vol 16 (1) ◽  
pp. 70-79
Author(s):  
Wojciech Kaczmarczyk
Keyword(s):  
Stock Prices ◽  
Information Transfer ◽  
Banking Sector ◽  
Stock Exchange ◽  
Public Information ◽  
Electronic System ◽  
Market Reactions ◽  
Warsaw Stock Exchange ◽  
Market Indexes ◽  
The Impact

Abstract Research purpose: Seven of 10 companies that have won the Polish Forbes edition Merge & Acquisition 2018 Ranking are listed on Warsaw Stock Exchange. The aim of the conducted research was to test if the biggest acquisitions have an impact on stocks value and is it possible for typical investor to create extra profit by using knowledge of acquisition based on public information. Design/Methodology/Approach: Using data from Warsaw Stock Exchange (quotations), typical measures such as rate of return, standard deviation (risk), correlation and transaction volume changes were calculated. Each of the case results obtained for the company was compared with the result for stock market indexes: WIG (Warszawski Indeks Giełdowy – main WSE index), WIG20 (WSE sub-index of the 20 largest companies), mWIG40 (WSE sub-index of 40 medium companies) and sWIG80 (WSE sub-index of 80 small companies). In addition, the outcomes were confronted with public news (from WSE Electronic System for Information Transfer). Findings: Conducted research has shown that generally successful finalisation of acquisition results in changes of stock prices behaviour. Unfortunately, observed reactions were not the same. Acquisitions induced both increases and decreases in stock prices; there was also no rule in case of risk change. Generally, acquisitions and merges had rather good influence in banking sector (which is still concentrating), but there was no common reaction in other sectors. Originality/Value/Practical Implications: The results will be useful for investors acting on Warsaw Stock Exchange, especially for individual investor who are not able to carry out detailed analyses. The research provides results including possible pre-effects and after-effects of making big acquisition by a large company. The negative market reactions were also shown.

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