Abstract
The main purpose of this study is to find out which economic dimensions of the firm are reflected in stock price behaviour in the Finnish stock market. Based on the previous theoretical articles, four economic dimensions are chosen: profitability, financial leverage, operating leverage and corporate growth. Twelve (12) financial ratios are then selected to represent these four dimensions. All the Finnish firms common series listed for the whole 1974–1986 period are included in the empirical analysis.
The financial support by the Academy of Finland as well as the helpful comments and suggestions of an anonymous referee are gratefully acknowledged.
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Martikainen, T. (1991). Modelling Stock Price Behaviour by Financial Ratios. In: Spronk, J., Matarazzo, B. (eds) Modelling for Financial Decisions. Studies in Financial Modelling. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-76761-6_9
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DOI: https://doi.org/10.1007/978-3-642-76761-6_9
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