Publicação
Ratios and indicators that determine return on equity
| Resumo: | This study aims to investigate factors that may affect return on equity (ROE). The ROE is a gauge of profit generating efficiency and a strong measure of how well the management of a firm creates value for its shareholders. Firms with higher ROE typically have competitive advantages over their competitors which translates into superior returns for investors. Therefore, seems imperative to study the drivers of ROE, particularly ratios and indicators that may have considerable impact. The analysis is done on a sample of 90 largest non-financial companies which are components of NASDAQ-100 index and also on industry sector samples. The ordinary least squares method is used to find the most impactful drivers of ROE. The extended DuPont model’s components are considered as the primary factors affecting ROE. In addition, other ratios and indicators such as price to earnings, price to book and current are also incorporated. Consequently, the study uses eight ratios that are believed to have impact on ROE. According to our findings, the most relevant ratios that determine ROE are tax burden, interest burden, operating margin, asset turnover and financial leverage (extended DuPont components) regardless of industry sectors. |
|---|---|
| Autores principais: | Kharatyan, Davit |
| Assunto: | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| Ano: | 2016 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Bragança |
| Idioma: | inglês |
| Origem: | Biblioteca Digital do IPB |
| _version_ | 1867172729297305600 |
|---|---|
| author | Kharatyan, Davit |
| author_facet | Kharatyan, Davit |
| author_role | author |
| contributor_name_str_mv | Lopes, José Carlos Nunes, Alcina Aghababyan, Lusine Biblioteca Digital do IPB |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Kharatyan, Davit\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Lopes, José Carlos Nunes, Alcina Aghababyan, Lusine Biblioteca Digital do IPB |
| datacite.creators.creator.creatorName.fl_str_mv | Kharatyan, Davit |
| datacite.date.Accepted.fl_str_mv | 2016-01-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2016-09-27T15:31:00Z |
| datacite.date.embargoed.fl_str_mv | 2016-09-27T15:31:00Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| datacite.titles.title.fl_str_mv | Ratios and indicators that determine return on equity |
| dc.contributor.none.fl_str_mv | Lopes, José Carlos Nunes, Alcina Aghababyan, Lusine Biblioteca Digital do IPB |
| dc.creator.none.fl_str_mv | Kharatyan, Davit |
| dc.date.Accepted.fl_str_mv | 2016-01-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2016-09-27T15:31:00Z |
| dc.date.embargoed.fl_str_mv | 2016-09-27T15:31:00Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10198/13313 |
| dc.language.none.fl_str_mv | eng |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| dc.title.fl_str_mv | Ratios and indicators that determine return on equity |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_bdcc |
| description | This study aims to investigate factors that may affect return on equity (ROE). The ROE is a gauge of profit generating efficiency and a strong measure of how well the management of a firm creates value for its shareholders. Firms with higher ROE typically have competitive advantages over their competitors which translates into superior returns for investors. Therefore, seems imperative to study the drivers of ROE, particularly ratios and indicators that may have considerable impact. The analysis is done on a sample of 90 largest non-financial companies which are components of NASDAQ-100 index and also on industry sector samples. The ordinary least squares method is used to find the most impactful drivers of ROE. The extended DuPont model’s components are considered as the primary factors affecting ROE. In addition, other ratios and indicators such as price to earnings, price to book and current are also incorporated. Consequently, the study uses eight ratios that are believed to have impact on ROE. According to our findings, the most relevant ratios that determine ROE are tax burden, interest burden, operating margin, asset turnover and financial leverage (extended DuPont components) regardless of industry sectors. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | masterThesis |
| fulltext.url.fl_str_mv | https://bibliotecadigital.ipb.pt/bitstreams/6cb1c9ff-55c4-4fad-92d9-db55467ebfbd/download |
| id | ipb_bea050b02e346f0dcf2243371aecff72 |
| identifier.url.fl_str_mv | http://hdl.handle.net/10198/13313 |
| instacron_str | ipb |
| institution | Instituto Politécnico de Bragança |
| instname_str | Instituto Politécnico de Bragança |
| language | eng |
| network_acronym_str | ipb |
| network_name_str | Biblioteca Digital do IPB |
| oai_identifier_str | oai:bibliotecadigital.ipb.pt:10198/13313 |
| organization_str_mv | urn:organizationAcronym:ipb |
| person_str_mv | Kharatyan, Davit |
| publishDate | 2016 |
| reponame_str | Biblioteca Digital do IPB |
| repository_id_str | urn:repositoryAcronym:ipb |
| service_str_mv | urn:repositoryAcronym:ipb |
| spelling | engpt_PTThis study aims to investigate factors that may affect return on equity (ROE). The ROE is a gauge of profit generating efficiency and a strong measure of how well the management of a firm creates value for its shareholders. Firms with higher ROE typically have competitive advantages over their competitors which translates into superior returns for investors. Therefore, seems imperative to study the drivers of ROE, particularly ratios and indicators that may have considerable impact. The analysis is done on a sample of 90 largest non-financial companies which are components of NASDAQ-100 index and also on industry sector samples. The ordinary least squares method is used to find the most impactful drivers of ROE. The extended DuPont model’s components are considered as the primary factors affecting ROE. In addition, other ratios and indicators such as price to earnings, price to book and current are also incorporated. Consequently, the study uses eight ratios that are believed to have impact on ROE. According to our findings, the most relevant ratios that determine ROE are tax burden, interest burden, operating margin, asset turnover and financial leverage (extended DuPont components) regardless of industry sectors.application/pdfpt_PTRatios and indicators that determine return on equityKharatyan, DavitLopes, José CarlosNunes, AlcinaAghababyan, LusineHostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.ptURNurn:tid:2014284822016-09-27T15:31:00Z201620162016-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/13313http://purl.org/coar/access_right/c_abf2open accessReturn on equityRatio analysisDuPont modelReturn on equity ratios/indicators821299 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesis2016http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/6cb1c9ff-55c4-4fad-92d9-db55467ebfbd/download |
| spellingShingle | Ratios and indicators that determine return on equity Kharatyan, Davit Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| status | SINGLETON |
| subject.fl_str_mv | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| title | Ratios and indicators that determine return on equity |
| title_full | Ratios and indicators that determine return on equity |
| title_fullStr | Ratios and indicators that determine return on equity |
| title_full_unstemmed | Ratios and indicators that determine return on equity |
| title_short | Ratios and indicators that determine return on equity |
| title_sort | Ratios and indicators that determine return on equity |
| topic | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| topic_facet | Return on equity Ratio analysis DuPont model Return on equity ratios/indicators |
| url | http://hdl.handle.net/10198/13313 |
| visible | 1 |