Abstract
The study examines the effect of accounting measurements that includes: earning per share, current ratio, debt to equity ratio, and cash flow ratio on the stock price of manufacturing companies listed in Palestine exchange. According to the information availability; the researcher selected 10 companies out of 13 to be examined. The period from 2015 to 2020 is covered by the study. Panel data is used to apply the least square regression model. The study revealed that there is no significant effect of EPS, Current ratio, Debit to Equity, Cash flow Ratio on the stock prices of manufacturing sector companies listed in the Palestine Exchange from 2015 to2020. Keywords: stock prices, earning per share, current ratio, debt to equity ratio, cash flow ratio DOI: 10.7176/RJFA/13-4-05 Publication date: February 28 th 2022
Highlights
IntroductionRational investors look forward to maximize the wealth, regardless of the investment type
Investors try to find out the best approach to analyze cost, benefit, and risk of investment portfolio
Many researchers confirm that the debt to equity ratio (DER), return on assets (ROA), return on equity (ROE), earnings per share (EPS) and other accounting measurements affect the investment decisions reflected on the stock price (Imran, 2018; Siregar & Doriawaty, 2021; Utami & Darmawan, 2019)
Summary
Rational investors look forward to maximize the wealth, regardless of the investment type. 3. Literature review To predict the stock price, many researchers use a verity of accounting measurements such as Earning per Share, Price to Book Value, Return of Equity, Current Ratio, Debt to Equity, and Percentage Changes of Net Sales. Literature review To predict the stock price, many researchers use a verity of accounting measurements such as Earning per Share, Price to Book Value, Return of Equity, Current Ratio, Debt to Equity, and Percentage Changes of Net Sales They use annual data from 2011-2015 and cover 109 listed non-financial firms of Pakistan’s Stock Exchange (PSX) (Imran, 2018). At Istanbul Stock Exchange over the period 2008-2016 Öztürk analyzes current ratio, earnings to price, net profit margin and stock return (2017) As it has been mentioned above, researchers examine different accounting measurements to predict the stock price. Statistical analysis and results The following section presents the analysis of the data; it includes the test of regression model’s assumption, and the regression analysis results
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