The individual and incremental significance of the economic determinants of stock returns and systematic risk

fi=vertaisarvioitu|en=peerReviewed

On the maximization of shareholders' wealth: Evidence based on firm-specific financial characteristics

This paper focuses on the long-term firm-specific determinants of stock returns. The main goal of the investigation is to show which of the financial characteristics of a firm its management should concentrate on, when maximizing the wealth of the common shareholders. It is found that profitability, financial leverage, operating leverage and growth are important long-term determinants of firm value in the Finnish stock market. However, significant differences are observed between the measures applied to the same presumptive characteristics of the firm.Maximization of shareholders' wealth stock returns firm-specific financial variables

The impact of infrequent trading on betas based on daily, weekly and monthly return intervals : empirical evidence with Finnish data

This paper examines the empirical properties of common stock systematic risk estimates measured from daily, weekly and monthly return intervals in the Finnish stock market. Firstly, the effects of infrequent trading on betas measured from the three return intervals are analysed. Secondly, it is aimed to find out whether the differences in the stability of the selected systematic risk estimates can be explained by infrequent trading. Thirdly, the linear risk-return relationship suggested by the CAPM is tested using the different systematic risk estimates. In addition, two widely discussed anomalies, the size-effect and the E/P-effect, are focused in this context.

Trading strategies based on stock market anomalies on the Helsinki stock exchange

fi=vertaisarvioitu|en=peerReviewed

Distributional characteristics and proportionality of market-based security ratios

The distributional characteristics and the proportionality of two market-based security ratios, the Earnings Yield and the Dividend Yield, are tested using Finnish data. The results indicate both of the ratios to be proportional in nature. However, being positively skewed, the Dividend Yield ratio requires transformation to achieve normality. This is due to the fact that this ratio has a technical limit to zero.