Analysing market ratio fluctuations before and after publication of financial statements

Abstract

The study aims to analyse market ratios fluctuation before and after the publication of financial statements. This study was encouraged by the fact that there is currently a gap in the literature where no evidence is found of what the relationship between the market ratios and the beta analysis before and after the publication of annual financial statements according to market ratios are determined. Financial ratios are used by investors, potential investors, creditors and competitors to monitor and evaluate company performance. In monitoring and evaluation, investors consider annual financial statements, integrated reports and the background of companies. This research demonstrates that a holistic analysis of ratios and other factors should be considered in the investment decision-making process. The primary goal is obtained through the secondary objectives to determine qualitative and quantitative indicators on market analysis that investors make their decisions on and determine the relationship between market ratios and beta. This study makes use of a quantitative method where quantitative and qualitative data were collected and analysed. Literature was aggregated and analysed through INETBFA. The information was obtained from INET BFA of the selected 60 listed companies for a six-year period for the financial year ending from January 2014 to June 2019.These companies were divided into three groups namely: high (20), average (20) and low (20), based on the market value. The correlation and ANOVA test have been conducted there is a relationship between the fluctuation of market ratios before and after the publishing of annual financial statements. The findings of the study indicate that there is a fluctuation relationship between share prices, market-related ratios and beta that are classified as market ratios that influences investors decision-making. Therefore, the general ability of the results to other companies and countries is limited.