Financial Statement and Ratio Analysis: A Classroom Perspective

25 Pages Posted: 15 Aug 2018  

Mehmet F. Dicle

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business; Research ATA, LLC

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://researchforprofit.com

Research ATA, LLC ( email )

Mandeville, LA 70448
United States

HOME PAGE: http://researchata.com

Jean Meyer

Loyola University New Orleans ( email )

526 Pine Street
New Orleans, LA 70118
United States

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