Naslov
The Influence of Capital Structure Change on EPS

Autori
Sever, Sanja ; Oluić, Ana ; Žager, Lajoš

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Skup
AIESA - building of society based on knowledge, 11th International Scientific Conference

Mjesto i datum
Bratislava, Slovačka, 17.05.2007. - 19.05.2007

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
financial ratios; capital structure; earnings per share

Sažetak
Earnings per share are widely used financial ratios in evaluating operating performance and profitability of the companies. According to International Accounting Standard (IAS 33 - Earning per share) all public companies must publish this ratio for their companies. The calculation of this ratio depends on the capital structure of the company. IAS 33 requires dual presentation of basic EPS and diluted EPS for the companies with complex capital structures. The earnings per share ratio is frequently used by shareholders to demonstrate the growth in the company's financial performance over time. Changes in capital structure can cause distortions in this financial ratio. These changes occur with bonus issues, share splits, new issues and buying back at full market price during the year. It is necessary to take into account these changes in capital structure to ensure that the EPS ratio is comparable for two accounting periods. Only on the basis of comparable financial ratios the investors can make the right investment decision.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA