Financial Ratios And Stock Prices: Consistency Or Discrepancy? Longitudinal Comparison Between UAE And USA

Abstract

This paper aims at studying the association between stock prices and relevant financial ratios, and comparing the results for Dubai and USA based-stocks. It is noticed that the relationship between Dubai stock prices and respective ratios is not significant, whereas a better correlation is observed for US stocks. Several models and tests are applied and more than forty regressions are built in order to do individual companies’ assessment, sectors evaluation and countries comparison between USA and UAE.