Wpływ monotoniczności zmian zysków spółek na ich wycenę giełdową
IMPACT OF MONOTONIC CHANGES OF CORPORATE EARNINGS ON STOCKS’ MARKET VALUATION

Summary/Abstract: Capital markets appreciate stability and growth. That means that companies showing stable and persistently growing earnings are on average valued higher than companies experiencing persistent decreases of earnings. Therefore in market values of companies showing persistent increases/decreases of earnings there is discernible premium/discount reflecting market belief in high probability of continuation of prior earnings growth/decline. The empirical analysis presented in the paper found that at the end of March 2010 Polish companies showing monotonically decreasing earnings in 2006-2009 period were quoted with discount averaging 5.1% and companies showing monotonically increasing earnings were quoted with premium averaging 16.9%.

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