Fundamental Analysis, Stock Returns and High B/M Companies
Ιn this paper we initially estimate the financial performance of high BM companies based on the analysis of profitability, liquidity-leverage and operating efficiency ratios.The performance of the specific group as a whole, was found to be quite poor and that is why it is reflected in a high BM ratio score for the companies involved.The research then showed that a portfolio of the best performing high BM companies, chosen through the F-score mechanism, exhibits a statistically significant higher mean of market-adjusted as well as raw returns, compared to any other type of classification of the companies of the category.The research was conducted for the period 2010-2015 and applied to companies listed in the North America Stock Exchange Markets.