Factors of stocks price: evidence in the constituent companies of the PSI- 20

Abstract

The main objective of this article is reflected in the analysis of the effect of corporate performance indicators in the stock price accounted for by the Portuguese capital market using fundamental analysis. In the empirical study conducted was used as the sample listed financial institutions in PSI 20 and the estimated results are obtained by applying the OLS and report to 31 December of the years 2002 to 2012.

The estimated results suggest that indicators of business performance is likely to explain the present market price of the shares of financial companies, finding a significant effect of almost all variables. Thus protrudes significantly positive effect of variable profitability of assets and lending variable. There seems to be a positive relationship between return on assets and the performance of listed financial institutions in the Portuguese PSI 20, as well as these institutions increase the financing market also contribute to increase the price of its shares. In turn, the net result, the number of shares issued and the ratio of loans in arrears are statistically significant variables in explaining the stock price but with a negative sign.