Nowadays investment climate and capital accumulation culture is being formed in the Baltic States. The topicality of this issue is emphasized by high inflation, when the population is eager to achieve as high performance of their assets as it is possible. Moreover, it is understood that one should save now to secure own well-being when retired which also spurs the demand for high yearly performance. Equity investments are proved to be the most profitable among all financial instruments in the long term. However, because of recent corporate scandals connected with financial results’ manipulations (e.g. Enron, Worldcom, Parmalat), many existing and potential investors are not willing to invest in equities anymore. When accounting manipulations of the financial results are discovered by controlling institutions, the value of equity swiftly decreases. So, before investing in a particular company, one should conduct a thorough analysis on estimating the plausibility of financial results. The quality and the plausibility of the financial results can be assessed using the following criteria: corporate alpha, return on capital, operating cash flow and net income comparison, accruals. Besides, prior to investing in the company one should check income statement and balance sheet of the company in order to detect possible manipulations. The aim of the research is to evaluate the impact of the Baltic companies’ financial results plausibility on the equity performance. In the course of the study plausibility of financial results of 36 public Baltic companies is evaluated. Additionally, financial result plausibility impact on stock prices is estimated. The data used in the research was originated from corporate annual reports and from OMX homepage. Research is done for the time period from January 2002 to September 2007. The authors primarily pay attention to the influence of mentioned ratios on stock prices: corporate alpha, net income and operating cash flow comparison, accruals. The authors find out that with the help of corporate alpha it is possible to evaluate the quality and stability of earnings and, thus, financial results. However, it cannot provide the logical pattern of its impact on stock price movements. Comparing net income and operating cash flow, one may know future share price movement as the companies with higher operating cash flow compared to net income perform better than their counterparts with net income exceeding the operating cash flow. However, this trend is observed starting only with financial year 2006. Average Baltic States company does not have accruals. However, there are some companies that tend to use accruals in order to look more attractive for investor. The highest accruals among Baltic States companies are found in construction and pharmaceuticals industries’ representatives. Evaluating the influence of accruals on stock prices, the author discovers that the companies, which have negative accruals (from -30% to -8%), are the worst-performers on the Baltic stock marker as the majority of them are stable corporations having weak growth potential. Investors preference definitely enjoy those companies that have accruals at relatively low level (from -6% to 2%) as these companies usually are having high growth potential. Main findings of the research demonstrate that the quality and plausibility of the financial results of Baltic public companies do not exert significant influence on the share performance. However, financial results of the Baltic companies are not always plausible, which can turn foreign investor off from investing in Baltic stock market.