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Investigation Of Equity Risk Premium In Hungarian Food Industry

Author

Listed:
  • Andrea GERGELY

    (University of Debrecen, Faculty of Economics and Business)

  • Andrea RÓZSA

    (University of Debrecen, Faculty of Economics and Business)

Abstract

Official list of top500 companies according to annual revenue and net profit is provided and publicized in Hungary every year by contribution of international data service corporations as Bisnode or Creditreform. The reliability of these orders can be controlled through corporate information database of Opten or Central Statistical Office. The main purposes of this study is to identify the most important leading companies of Hungarian food industry on the basis of revenue and net profit after tax orders and to analyse financial features and changes of these in period of 2010-2015. The main focus is on the investigation of capital structure, solvency and profitability (particularly return on equity) using financial indicators. Our hypothesis is that the accompanies of leading position both in revenue and net profit are safe capital structure (low debt and loan ratio), stability in solvency and positive equity risk premium. The research is based on official annual reports, relevant macroeconomic data and international literature of financial analysis.

Suggested Citation

  • Andrea GERGELY & Andrea RÓZSA, 2018. "Investigation Of Equity Risk Premium In Hungarian Food Industry," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 16, pages 7-19, May.
    • Handle: RePEc:cmj:seapas:y:2018:i:16:p:7-19
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    References listed on IDEAS

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    3. Perekhozhuk Oleksandr & Hockmann Heinrich & Fertő Imre & Bakucs Lajos Zoltán, 2013. "Identification of Market Power in the Hungarian Dairy Industry: A Plant-Level Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-13, January.
    4. Herrmann, Andrea M., 2008. "One Political Economy, One Competitive Strategy?: Comparing Pharmaceutical Firms in Germany, Italy, and the UK," OUP Catalogue, Oxford University Press, number 9780199543434.
    5. Rajan, Raghuram G & Zingales, Luigi, 1995. "What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-1460, December.
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    More about this item

    Keywords

    Hungarian food industry; Financial analysis; Equity risk premium;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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