Evaluation of Impact of Financial Result Plausibility of Baltic State Companies on Equity Performance
Economics and Management = Ekonomika ir vadyba 2008
Jūlija Grigorjeva, Nataļja Lāce

Stock investor needs to assess the plausibility of financial results that helps to avoid negative earnings surprises and accounting fraud scandals. Proved to be correct on the efficient market, the statement, that firms with plausible financial results provide higher returns in the longer-term, is also tested on the developing Baltic equity market. The primary tools to evaluate financial results plausibility were chosen as follows: level of accruals and net income and operating cash flow comparison. The evidence from the market research does not show that investors tend to value most companies with plausible financials. Moreover, as shown by qualitative analysis often Baltic equity market investors do not recognize creative accounting practices used by stock exchange traded companies.


Atslēgas vārdi
Baltic States companies, financial results, plausibility, equity performance, accruals

Grigorjeva, J., Lāce, N. Evaluation of Impact of Financial Result Plausibility of Baltic State Companies on Equity Performance. Economics and Management = Ekonomika ir vadyba, 2008, No.13, 115.-120.lpp. ISSN 1822-6515.

Publikācijas valoda
English (en)
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