Reza, Sm
[Verfasser:in]
;
Roca, Eduardo
[Sonstige Person, Familie und Körperschaft];
Tularam, Gurudeo Anand
[Sonstige Person, Familie und Körperschaft]
Fundamental Signals of Investment Profitability in the Global Water Industry
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 22, 2013 erstellt
Beschreibung:
We investigate the fundamental company variables that can serve as indicators of profitability of investment in global water company stocks. More specifically, we examine the relationship between eleven company variables and abnormal returns with regards to the twenty companies that comprise the World Water Index. The variables considered are revenues, sales and administration expenses, operating profit, earnings before interest and tax, accounts receivable, inventory, plant, property and equipment, goodwill and intangible assets, accounts payable, dividend paid and labor force. We apply panel data regression on data covering the period January 1, 2004 to December 31, 2011. Five fundamental variables can signal profitability of investment in the water industry: earnings before interest and taxes, accounts payable, labor force, and sales and administration expenses and accounts receivable. The first three variables are associated with negative returns while the other two variables are positively related to returns