Financial Statement and Ratio Analysis: A Classroom Perspective

25 Pages Posted: 15 Aug 2018

See all articles by Mehmet F. Dicle

Mehmet F. Dicle

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

Jean Meyer

Loyola University New Orleans

Date Written: July 31, 2018

Abstract

Earnings yield theory argues that current stock prices reflect the present value of all expected future payouts. Ultimate aim of a company is to generate income. Items in financial statements therefore show, among others, how likely is it for a company to turn a positive income. Investors pay close attention to any changes in financial statements and reflect these changes in stock prices. This study provides a summary of the theory about investor reaction to changes in financial statements. The main aim of this study is to provide the theory and its application with a classroom approach with current and actual data. A software command is provided to download and to process the relevant data.

Keywords: Financial statements, financial accounting, stock returns, investor reaction

JEL Classification: M41, G00

Suggested Citation

Dicle, Mehmet F. and Meyer, Jean, Financial Statement and Ratio Analysis: A Classroom Perspective (July 31, 2018). Available at SSRN: https://ssrn.com/abstract=3223965 or http://dx.doi.org/10.2139/ssrn.3223965

Mehmet F. Dicle (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
New Orleans, LA 70118
United States

HOME PAGE: http://researchata.com

Jean Meyer

Loyola University New Orleans ( email )

526 Pine Street
New Orleans, LA 70118
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
430
Abstract Views
2,018
Rank
124,442
PlumX Metrics