Author(s): Nicholas Otu Mantey, Amoah Joseph Baffoe
Stock market analysts require relevant and timely information to make informed investment decisions. These industry players require stock market analytical approaches such as the fundamental analysis and the technical analysis. The basis of these approaches and especially with the fundamental analysis is that stock prices (returns) reflect the financial performance of the companies or vice-versa. This study examines the assertion that stock prices are indicative of the financial performance of companies listed on stock exchanges, using Ghana as a case study. The research sampling technique employed is the purposive technique. Using SPSS version 21, the data was analyzed using multiple linear regression at 0.05 significance level. The results suggested that liquidity, Asset Quality, Net Interest Margin, Return on Assets and Capital Adequacy Ratio have no effect on the stock prices/stock returns