Profit and Stock Prices: New Evidence Contrasting the General Consensus of Their Relationship
DOI:
https://doi.org/10.47611/jsrhs.v11i3.3813Keywords:
Profit, Stock Prices, Significance, CorrelationAbstract
Ever since the early 17th century, the stock market has become one of the most important aspects of economy in modern society. Which is why is it important to clearly understand the stock market and invest in the companies that would bring profit. When profit and stock prices are discussed together, people tend to assume that there is a correlation between the two. This is because profit is the monetary representation of that company outside of the stock market, and stock prices are the monetary representation within the stock market. However, while there are countless articles proving why there are such relationships between the two, there are also articles disputing that there are any significant relationships. Due to this disagreement in the literature, this paper is going to investigate the relationship between profit and stock prices.
Downloads
References or Bibliography
Annual Reports. 2003, http://www.annualreports.com/. Accessed 18 Aug. 2022.
Bangia, Akhil. "Introduction to ANOVA for Statistics and Data Science (with COVID-19 Case Study using Python)." Analytucs Vidhya, June 2022, www.analyticsvidhya.com/blog/2020/06/introduction-anova-statistics-data-science-covid-python/.
Beattie, Andrew. "What Was the First Company to Issue Stock?" Investopia, 30 June 2022, www.investopedia.com/ask/answers/08/first-company-issue-stock-dutch-east-india.asp.
Beck, Kevin. "What Is the Tukey HSD Test?" Sciencing, 26 Nov. 2018, sciencing.com/what-is-the-tukey-hsd-test-12751748.html.
Chen, James. "Nasdaq 100 Index." Investopia, 31 Dec. 2021, www.investopedia.com/terms/n/nasdaq100.asp.
Fatmawati, Sholichah. "The Effects of Profitability and Solvability on Stock Prices: Empirical Evidence from Indonesia." Korea Science, 3 30 2021, koreascience.kr/article/JAKO202106438543598.page#:~:text=Hypothesis%202%20(H2)%3A%20profitability,price%20in%20the%20capital%20market.
Harper, David. "Forces That Move Stock Prices." Investopia, 22 July 2022, www.investopedia.com/articles/basics/04/100804.asp.
Hwang, Inyoung. "A Brief History of the Stock Market." SoFi Learn, 8 Jan. 2021, www.sofi.com/learn/content/history-of-the-stock-market/.
Kenton, Will. "Analysis of Variance (ANOVA)." Investopia, 19 Mar. 2022, www.investopedia.com/terms/a/anova.asp#:~:text=Analysis%20of%20variance%20(ANOVA)%20is,the%20random%20factors%20do%20not.
Lane, Terry. "How Do Profits Reflect Stock Prices?" ZACKS, 6 Mar. 2019, https://finance.zacks.com/profits-reflect-stock-prices-8263.html
Macrotrends. 2010, www.macrotrends.net/.
Muralidhar, KSV. "Demystifying R-Squared and Adjusted R-Squared." Towards Data Science, 27 Aug. 2021, towardsdatascience.com/demystifying-r-squared-and-adjusted-r-squared-52903c006a60.
Rabener, Nicholas. "Myth-Busting: Earnings Don't Matter Much for Stock Returns." Enterprising Investor, CFA Institute, 22 Mar. 2021, blogs.cfainstitute.org/investor/2021/03/22/myth-busting-earnings-dont-matter-much-for-stock-returns/.
Rabianski, Joseph. "Primary and Secondary Data." Primary and Secondary Data: Concepts, Concerns, Errors, and Issues.
"Refinitiv An LSEG Business." Refinitiv, LSEG, www.refinitiv.com/en.
Salomons, Bobby. "The Dutch East India Company was richer than Apple, Google and Facebook combined." DutchReview, Nov. 2021, dutchreview.com/culture/history/how-rich-was-the-dutch-east-india-company/#:~:text=The%20VOC's%20stocks%20pushed%20the,7%2C900%20billion%20%E2%80%94%20or%2079%2C000%20million.
SoFi. "How to Analyze a Stock." SoFi Learn, 11 Feb. 2021, www.sofi.com/learn/content/how-to-analyze-a-stock/#:~:text=One%20of%20the%20most%20common,ratio%20is%20a%20good%20sign.
Stefan. "Interpreting TukeyHSD output in R." Cross Validated, 28 Dec. 2016, stats.stackexchange.com/questions/253588/interpreting- tukeyhsd-output-in-r#:~:text=p%20adj%20is%20the%20p,your%20comparisons%20are%20statistically%20significant.
Tsarouva, Maria. "Stock market data analytics explained." iTechArt, 4 Nov. 2022, www.macrotrends.net/.
Yale University. "Linear Regression." Yale University Department of Statistics, 1997, www.stat.yale.edu/Courses/1997-98/101/linreg.htm
Published
How to Cite
Issue
Section
Copyright (c) 2022 Ziyang Zhong
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright holder(s) granted JSR a perpetual, non-exclusive license to distriute & display this article.
