سلوك العائد و المخاطرة للشركات صغيرة الرسملة

Abstract

Risk and return analysis plays a most important role while making any investment decisions. Every rational investor, analyse the risk and return before investing in any stock or security. The investment process must be considered in terms of both risk and return . It is generally believed that if the investor wants to earn higher return then he will have to take more risk for earning higher return, if he doesn’t want to take higher risk then he can’t earn higher return. So, higher return commensurate with higher risk. However, lot s of studies had been conducted to analyse risk and return, few studies stated that higher risk is commensurate with higher return while other studies criticizes it and stated that higher risk do not generally commensurate with higher return. The purpose o f this paper is to review the past literature available on risk and return to throw the light on the relationship between them. This study aims to analyze the relationship between return and risk for small - capitalized companies during the period (2016/2019) using financial ratios and a linear regression analysis model in light of the data of the panel. Where the study included 09 industrial establishments that were selected from among all the small capitalized enterprises on the basis of 03 advan tages: 01. Small businesses, fast - growing capital. 02. Small - capitalized companies with best value. 03. Small companies are more capitalized. The study concluded that all financial ratios help greatly in studying the risk and return. Gross profit margin is negatively correlated with operating profit margin, rate of return on investment and earnings per share . The rate of return on equity is positively correlated with gross profit margin, operating profit margin, rate of return on investment and earnings per share.