Equity Investment decisions

Level: Undergraduate | Grade: 2:1 | Approx. Word Count: 1,700

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Overview

Firm performance, most importantly its level of profitability and competitive advantage in the national and global market environment, has a significant impact on its stock market performance. In particular, if a firms returns a sustained period of losses, as was the case with Vodafone during the early 2000's, this situation is likely to result in the stagnation or reduction in the share value as investors look for alternative equities that are are providing more positive returns  

The aim of the current study is to examine and analyse the performance of Vodafone during the five year period from 2002-2006 and, additionally to establish the effect this performance has had on the firm’s share values during the same period. The latter analysis will assist in determining the extent to which, if any, the historical losses of the corporation has affected external shareholder investment decision-making.