| Summary: | 碩士 === 國立虎尾科技大學 === 經營管理研究所 === 103 === Firm stock price is driven by both external factors and internal factors. There are many factors affect firm stock price. And this study analyzes how internal factors affect stock price. Financial statement with financial ratios is the most important evidence shows firm financial situation; stock price is the measure of firm value. The main purpose of this study is to find out the relationship between financial ratios and stock price in Vietnam stock market. Based on the previous theoretical articles, five economic dimensions are chosen: efficiency ratio, profitability ratio, liquidity ratio, debt ratio, market prospect ratio. We decided to use asset turnover ratio (AT) to show the effect of efficiency ratio, and financial leverage (FL) to indicate the impact of debt ratio on stock price. Current ratio (CR) is selected to present liquidity ratio; earnings per share (EPS) is selected to present market prospect ratio; return on asset (ROA) ratio and return on equity (ROE) ratio are selected to present profitability ratio. The data is collected from Hanoi stock market and Ho Chi Minh stock market in 2011-2013 periods. All of the five expected dimensions above are found in the empirical classification pattern of ratios. On the cross-sectional level, profitability and financial leverage are reported as determinants of stock price. Liquidity is merely connected to the risk of the common stock. Somewhat weaker results concerning the association between stock price and asset turnover factor may be due to difficulties measuring asset turnover on an empirical level. Empirical evidence strongly indicates that financial ratios represent pricing relationships in a substantive manner.
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