Impact of profitability on stock price variations for the mexican stock exchange

Kretchmar-Hernández, Alexis

doi:10.22201/fca.24488410e.2026.5637

Impact of profitability on stock price variations for the mexican stock exchange

ISSN

01861042

Publisher

Universidad Nacional Autonoma de Mexico

Date Issued

2026-06-25

Author(s)

Kretchmar-Hernández, Alexis

Instituto Panamericano de Alta Dirección de Empresa (IPADE Business School)

Type

text::journal::journal article

DOI

10.22201/fca.24488410e.2026.5637

URL

https://scripta.up.edu.mx/handle/20.500.12552/13114

Abstract

The market value to book value multiple is widely used by financial analysts for the purpose of making investment decisions in shares (P) of companies listed on stock markets. The connection between the multiple and the company's performance is made through the financial analysis of the company's profitability, which is made up of growth in sales, profit generation and capital employed. A sample of 30 companies that were listed on the Mexican Stock Exchange between 2000 and 2023 (24 years) was taken, using the panel effects analysis method for statistical inferences. The results show that the variations in share prices are influenced by investors' expectations based on the future performance of the company in terms of expected profit, growth in sales and capital employed, which can be defined as the resources that companies use for its operation. © 2019 Universidad Nacional Autónoma de México, Facultad de Contaduría y Administración. Este es un artículo Open Access bajo la licencia CC BY-NC-SA (https://creativecommons.org/licenses/by-nc-sa/4.0/)