IDEAS home Printed from https://ideas.repec.org/a/ids/ijbexc/v25y2021i3p320-333.html
   My bibliography  Save this article

Differences in stock price drivers in case of global manufacturing and servicing companies

Author

Listed:
  • Andras Takacs

Abstract

This study investigates how net asset value per share (size), discounted earnings per share (profit-generating potential), and brand value per share (market acceptance) affect stock prices in case of global manufacturing and non-manufacturing companies. Eight regression models are designed and tested on a database of 132 company years in order to discover potential differences in investor reactions. Test results indicate that the relevance of financial indicators (size and profitability) on the stock price as well as investor reaction times vary for manufacturing and non-manufacturing firms. However, brand value per share, as an indicator of market acceptance, is a significant predictor of the share price for both company types with a relatively short reaction time by investors. These empirical findings may be useful for managers to find out which dimensions of performance should be managed in order to improve the market capitalisation of the firm.

Suggested Citation

  • Andras Takacs, 2021. "Differences in stock price drivers in case of global manufacturing and servicing companies," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 25(3), pages 320-333.
    • Handle: RePEc:ids:ijbexc:v:25:y:2021:i:3:p:320-333
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119461
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbexc:v:25:y:2021:i:3:p:320-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=291 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.