DETERMINANTS OF THE COMPANY’S FINANCIAL PERFORMANCE: ON THE NASDAQ 100
Keywords:
return on equity, ratio analysis, DuPont method, return on equity driversAbstract
This study is aimed at investigating the driving factors of return on equity (ROE). The analysis is carried out on the example of 90 largest non-financial companies, which are the constituents of the NASDAQ-100 index. The ordinary least squares method is used to find out the most impactful drivers of ROE. The extended DuPont method’s components as well as other financial ratios are incorporated in this study. According to the results, the extended DuPont components are the main factors affecting ROE.
