This paper examines the role of main microeconomic factors on the stock prices of selected Swiss companies listed on the Six Swiss Exchange. Two basic theoretical approaches and interpretations of this relationship are frequently used. The efficient market hypothesis (Fama, 1970) assumes that stock prices already contain all the relevant information and the theory of arbitration (Ross, 1976, or Chen et al., 1986). The microeconomic factors are based on the financial situation in companies. Financial ratios, taken from the financial statements of the individual companies, are used for the analysis. In general, the study confirmed that profitability and debt ratios are the most important business factors from the prospective of impact on stock prices. The relationship between the observed variables is explored using panel regression analysis. The generalized method of moments for constructing a regression model is used. The sample period of the dataset is composed of annual data from 2006 to 2015.
Chen, N.F., Roll, R., Ross, S.A. (1986). Economic Forces and the Stock Market. Journal of Business, 59(3), 383 – 403.
Cohen, D.A., Lys, T.Z. (2006). Weighing the Evidence on the Relation between External Corporate Financing Activities, Accruals and Stock Returns. Journal of Accounting and Economics, 42, 87–105.
Fama, E. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. Journal of Finance, 25, 383 – 417.
Fleming, J. (1998). The Quality of Market Volatility Forecasts Implied by S&P 100 Index Option Prices. Journal Of Empirical Finance, 5, 317–345.
Glezakos, M., Mylonakis, J. and Kafouros, Ch. (2011). The Impact of Accounting Information on Stock Prices: Evidence from the Athens Stock Exchange. International Journal of Economics and Finance, 4(2), 56 - 68.
Hansen, L.P. (1982). Large Sample Properties of Generalized Method of Moments Estimators. Econometrica, 50(4), 1029–1054.
Huang, R.D., Masulis, R.W. (2003). Trading Activity and Stock Price Volatility: Evidence from the London Stock Exchange. Journal of Empirical Finance, 10, 249–269.
Bradshaw, M.T., Richardson, S.A., Sloan, R.S. (2006), The relation between corporate Financing Activities, Analysts’ Forecasts and Stock Returns. Journal of Accounting and Economics, 42(1-2), 53-85.
Myring, M. (2006). The Relationship between Returns and Unexpected Earnings: A Global Analysis by Accounting Regimes. Journal of International Accounting, Auditing and Taxation, 15, 92–108.
Preis, T., Kenett, D.Y., Stanley, E., Helbing, D., Eshel, B.J. (2012). Quantifying the Behavior of Stock Correlations Under Market Stress. Scientific Reports, 2(752), 1-5.
Ross, S.A. (1976). The Arbitrage Theory of Capital Asset Pricing. Journal of Economic Theory, 13, 341 – 360.
Schrimpf, A. (2010). International Stock Return Predictability under Model Uncertainty. Journal of International Money and Finance, 29(7), 1256-1282.
Stalder, P. (2016). Exchange Rate Shocks, Monetary Policy and Boom-Bust Cycles in the Housing Market: An Econometric Analysis for Switzerland. Journal of Business Cycle Research, 12, 217–251.
Stancu, I., Stancu, A.T. (2014). Revisiting Multifactor Models on the Bucharest Stock Exchange. Economic Computation and Economic Cybernetics Studies and Research, 48(3), 3-10.