أثر اختلاف مستوى مضاعف الأرباح على عوائد و مخاطرة الاستثمارات : دراسة تطبيقية في سوق الأسهم السعودية

Abstract EN

This study aims at testing the relation between the different levels of earnings multiplier, and the returns and risks of the stock investment in the environment of Saudi Arabia through constructing portfolios for the different earnings multiplier levels (high and low).

The study hypothesis assumes that there is a statistically significant relation between low earnings multiplier portfolio and achieving higher expected rates of returns compared to high multiplier portfolio, and there is a statistically significant relation between low earnings multiplier portfolio and increasing risk degree compared to the high earnings multiplier portfolio.

The study data covers the period of 2007- 2016.

The study sample consists of (50) companies involved in all the sectors of the Saudi Arabia stock market.

The results of the study shows that there is a statistically significant relation between the level of low earnings multiplier portfolio and achieving higher expected returns on investments.

Moreover, the study shows that the relation between earnings multiplier and the degree of overall risk is statistically not significant.

The study concludes a number of recommendations, one of which is to highly focus while investing in the stock market on stocks that have high earnings multiples