CAN FINANCIAL RATIOS AFFECT THE STOCK PRICES OF SELECTED GERMAN COMPANIES?

For several centuries, stock price changes have been the subject of research by analysts and investors due to the possibility of achieving capital gains. As shown by empirical research, different types of variables affect stock prices, including financial ratios. The subject of the research was to determine the possibility of the existence of a relationship between the stock prices of selected energy and German chemical companies and financial ratios. Selected financial ratios include return on assets (ROA), return on equity (ROE), and financial leverage (FP); liquidity ratios include current liquidity (L3) and networking capital to total assets ratio (NWCA). In the case of indebtedness ratios, these are the debt ratio (DR) and equity ratio (ER). The turnover of total assets (OTA) and turnover of receivables (OTP) were included in the group of activity ratios. The application of the GMM method shows the positive impact of debt ratio on the stock prices of energy companies, while a negative effect on the stock prices of chemical companies.