Financial Analysis Stock Return - 2162 Words

Chapter 2 Literature review As we know stock holder consider the stock return as remarkable factor in the investment decisions of projects. So the focus of the present study is on the stock return predictability using financial ratios. Behavior analysis of stock return attain more stockholder attention in the market research than any other factor. Among many other factors which are associated with stock return capital gain and dividend yield can be at higher significance level because it is often said that the survival of short term investment is due the capital gain factor and the long term investment is done for the sake of dividend yield. In order to conduct the efficient study I invested the previous work done by researcher on the impact of financial ratio and stock return to get some help and guidance in my research work. Some of the previously work done in this context are stated below. Research background Prediction of stock return is very important matter which has always attained the attention of financial analysts. Now a day’s stock return predictability has been widely accepted theory. Most of the financial analysis techniques uses the financial ratio to predict stock return in which they use real data extracted from financial statements. These techniques are appropriate source to facilitate the stockholder decision making. Theoretical framework of study The financial statements consists of balance sheet, profit and loss statements, accumulated profit and loss,Show MoreRelatedImpact of Future Derivatives on Stock Market Volatility1588 Words   |  7 Pages Impact of Future Derivatives on Stock Market Volatility Derivatives has been the talk of the financial world after it was accussed as the primary reason for such a deep financial crisis that affecetd the global economy in 2007. 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