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Article Type

Research Article

Abstract

This study explores the empirical relationship between the stock prices and financial ratios in Bahrain Stock Exchange specifically applied on financial institutions listed in Bahrain Bourse. The results of the analysis varied as follows: earning per share, return on assets and return on equity ratios have shown positive relationship with the share price, while price to earnings ratio and Financial Leverage ratio have demonstrated negative relationship with the share price. Finally, the firm’s size which is measured by the total assets of the companies has no relation or impact on the stock price.

Keywords

Financial ratios, Share price, Financial institutions, Bahrain Stock Exchange

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