Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa
Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AOSIS Publishing
Abstract
This study investigated the relationship between share returns and nine variables that had been proven to influence returns in previous research, using a multiple regression analysis. These variables are size, leverage, book-to-market ratio, earnings yield, dividend payout, earnings growth, return on equity, earnings per share and asset growth. The impact of some of the variables on share returns proved to be insignificant, and some collinearity was identified between some of the variables. However, three significant variables were identified and the final regression model included the book-to-market ratio, dividend payout and leverage as the explanatory variables.
Description
CITATION: Vermeulen, M. 2016. Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa. Journal of Economic and Financial Sciences, 9(2): 426-435.
The original publication is available at https://jefjournal.org.za
The original publication is available at https://jefjournal.org.za
Keywords
Johannesburg Stock Exchange, Dividends -- South Africa, Stocks -- South Africa, Business enterprises -- South Africa
Citation
Vermeulen, M. 2016. Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa. Journal of Economic and Financial Sciences, 9(2): 426-435.