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Fundamental and macroeconomic information for the security prices valuation: the French case

Isabelle Martinez (ESUG – University of Toulouse I)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 December 1999

769

Abstract

Summarizes previous research on the links between share prices, accounting earnings and fundamentals (i.e. financial variables); identifies value‐relevant fundamentals used by analysts and assesses their usefulness by using principal components analysis on 1992‐1996 data for 50 French industrial firms. Finds three important factors (profitability ratios, returns/leverage and working capital/financial balance) which can be used in conjunction with two macroeconomic variables (inflation and change in real gross national product) to explain return variability.

Keywords

Citation

Martinez, I. (1999), "Fundamental and macroeconomic information for the security prices valuation: the French case", Managerial Finance, Vol. 25 No. 12, pp. 17-30. https://doi.org/10.1108/03074359910766316

Publisher

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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