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dc.contributor.authorGajdka, Jerzyen
dc.contributor.authorPietraszewski, Piotren
dc.date.accessioned2017-02-07T12:00:19Z
dc.date.available2017-02-07T12:00:19Z
dc.date.issued2016-09-24en
dc.identifier.issn1508-2008en
dc.identifier.urihttp://hdl.handle.net/11089/20513
dc.description.abstractThis paper discusses the links between economic growth, corporate earnings and stock returns. Cross-country correlation studies do not confirm the intuitive assumption that higher returns on equities are more likely in the faster-growing countries. The problem can be analysed more deeply by analysing stock returns with respect to the growth of earnings per share (EPS) and changes in valuation (P/E ratio). Within this framework, two types of factors explaining the lack of correlation between GDP growth and stock returns are distinguished. The empirical research on developed and emerging market countries reveals that in the long run stock price returns are driven by companies’ earnings, and that the lack of correlation between GDP growth and equity returns is almost fully explained by the divergence between GDP growth and EPS growth. In this article the results of an investigation into this area, based on a sample of post-communist Central and Eastern European countries, are presented and discussed. It was found that in these countries changes in valuation (P/E ratio) appear to play an important role, cancelling the impact of EPS growth on stock returns.en
dc.publisherWydawnictwo Uniwersytetu Łódzkiegoen
dc.relation.ispartofseriesComparative Economic Research;19en
dc.rightsThis work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.en
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0en
dc.subjecteconomic growthen
dc.subjectstock returnsen
dc.subjectearning per shareen
dc.subjectP/E ratioen
dc.subjectCentral and Eastern European countriesen
dc.titleEconomic Growth, Corporate Earnings and Equity Returns: Evidence from Central and Eastern European Countriesen
dc.page.number93-111en
dc.contributor.authorAffiliationGajdka, Jerzy - Ph.D., Full Professor at the University of Lodz, Faculty of Economics and Sociology, Department of Industrial Economics and Capital Marketen
dc.contributor.authorAffiliationPietraszewski, Piotr - Ph.D., University of Lodz, Faculty of Economics and Sociology, Department of Industrial Econonmics and Capital Marketen
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dc.contributor.authorEmailGajdka, Jerzy - jgajdka@uni.lodz.plen
dc.contributor.authorEmailPietraszewski, Piotr - ppietraszewski@uni.lodz.plen
dc.identifier.doi10.1515/cer-2016-0022en


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