| Abstract [eng] |
Evaluation of the Relationship between the Company's Financial Position, its Performance and Share Price. The main purpose of this master thesis is to evaluate the relationship between the Lithuanian companies’, operating in the non-financial sector, financial position, their performance and share price. The work consists of three main parts: analysis of literature, research and its results, and conclusion and recommendations. The literature analysis reviews previous research within external factors’ impact on share price and internal factors’, including financial results, impact on share price topics. After the literature analysis, methods used in empirical research were compared and the methodology of the study was prepared. The study is performed using multiple linear regression analysis to determine which financial ratios have the relationship with Lithuanian companies’, operating in the non-financial sector, share prices. The results of the research were statistically processed with the SPSS Statistics 17.0 programme. The performed research outcomes show that the regression equation represents 54.2 per cent of the share price movement. The main factors which show the relationship with the share price are equity-to-total-liabilities ratio, enterprise-value-to-EBITDA ratio, earnings per share, enterprise value-to-sales ratio, and price-to-sales ratios. The results of the research were compared to similar studies performed in other countries. There is a noticeable trend in empirical studies that the earnings per share ratio is one of the main variables which has a relationship with foreign companies’ share prices. In addition, foreign companies’ share prices have a relationship with ratios depending on the sales. It is noticeable in the research that there are several ratios which also depend on the company’s sales, showing a relationship with the share price. It can be stated that, Lithuanian companies’, operating in the non-financial sector, share prices depend on each company’s generated revenue and profits earned, in addition to how much revenue goes to one share. The conclusion summarises the main concepts from the literature analysis as well as the results of the performed research. The paper sets a path for further research into the topic of variables which also affect stock price movements. |
