Analysis of Financial Performance and Stocks Behavior

Abstract

The objective of this research is to find financial ratio and find the impact on stock behavior. Such work would add additional empirical findings to the existing literature by looking at another part of the world, as it seems to have been neglected in the previous Studies. Second objective is to find the risk on stocks and find the impact on stock prices. For this study annual accounts of four leasing companies have been used and their stock prices of same years. Analysis has been divided into different factors. Variable of analysis are i) financial ratios ii) returns iii) Risks This study used the correlational method to check the relationship between variables. To get closer result average prices of years were taken. After analysis of financial ratio Pearson correlation was applied to test the hypothesis. After using statistical tools the results are found with respect to the problem statement. It has been found out that not all the financial ratios effect on stock prices but only return on equity and return on assets make effect on stock prices.