Changes on share prices around year end revenue announcements

Abstract

This research’s aim is to explain how stock prices fluctuate in a period of fifteen days around the yearly revenue announcement by companies entered in NASDAQ exchange market and also to investigate the correlation between the price and five economic factors. As expected, EPS seems to have the higher correlation with the share price as a small increase of this ratio could cause a substantial increase on company’s share price. The same positive correlation can be observed on yearly revenues announced from the company and the yearly calculated P/E ratio without having the same big impact on the price though. In the other hand, dividends paid during the year and company’s average market capitalization of last year have negative correlation with the price meaning that a slightly increase of those two factors could force share price to move down.