Generolo Jono Žemaičio Lietuvos karo akademija

The objective of this empirical research is to analyze the risk-return through financial ratios as determinants of stock price in ASEAN region. To address this purpose, business firms from Malaysia, Indonesia, Thailand and Singapore are selected with a sample of 10 firms in each state over 2012 to 2016. Multiple regression technique is applied to analyze the relationship between financial ratios and stock prices. It is observed that current ratio, quick ratio, assets growth, return on assets, return on equity, return on capital employed, and price to earning ratio are significant determinants of stock price. Although this study is a reasonable addition in existing literature of financial ratios as determinants of stock price. However, contribution of the study can be viewed through covering a gap from the context of ASEAN region, which is under reserachers attentions for stock price determinants. Core limitations of the study covers limited number of sample size and five years of time duration. Besides, some ratios are missing which can be reconsidered in upcoming studies. These ratios include debt ratios, interest payment ratios, and fixed cost covered ratios as well.

In order to achieve the main objective – to facilitate the analysis of financial reports and assessment of company’s financial condition and activity, the analysis and modelling of usage of statistical methods becomes one of the tasks. The statistical analysis may also be treated as one of the main assessment modes of the company’s financial condition or activity, which can facilitate the work of analysts significantly. The conducted analysis of scientific literature allows stating that the usage of statistical methods in the assessment of company’s financial activity has not been widely analysed; besides, there are no assessment models, which would allow analysing the company’s finances sufficiently precisely and quickly. Thus the objective of the scientific research presented in this article is to identify and to define clearly the theoretical aspects of modelling of statistical methods within the context of financial analysis. Therefore it is meaningful to prepare a theoretical model of financial analysis with the help of statistical methods, on the basis of which the scientists, managers of the company or other interested persons would be able to conduct the company’s financial analysis sufficiently precisely and easily.