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  • 标题:The Influence of Profitability Ratios and Company Size on Profitability and Investment Risk in the Capital Market
  • 作者:Ph.D. Anna Rutkowska-Ziarko
  • 期刊名称:Folia Oeconomica Stetinensia
  • 印刷版ISSN:1730-4237
  • 电子版ISSN:1898-0198
  • 出版年度:2015
  • 卷号:15
  • 期号:1
  • 页码:151-161
  • DOI:10.1515/foli-2015-0025
  • 出版社:Walter de Gruyter GmbH
  • 摘要:

    A study was conducted of 15 food companies listed on the Warsaw Stock Exchange. The profitability of companies was measured by: return on assets (ROA), return on equity (ROE) and return on sales (ROS). Investment risk was measured by standard deviation and semi-deviation. The main objective of the study was to examine whether the average level and variability of selected indicators of profitability are reflected in the average level and the variability of returns on the capital market. An additional aim was to examine whether the size of the company affects the profitability and risk of investment in stocks as well as the average value and the volatility of profitability ratios. A positive correlation between the average value of the profitability ratios (ROA and ROS) and the average rates of return on the capital market was identified. Similarly, companies with higher volatility and semi-volatility of profitability ratios were simultaneously characterized by larger fluctuations in rates of return on the stock market. Studies have shown that the size of the company is negatively correlated with the risk of stock market investments and the volatility of profitability ratios.

  • 关键词:profitability ratios ; ROA ; ROE ; ROS ; market value ; risk ; semi-variance ; profitability of investment ; risk free rate
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