The use of DuPont Analysis in Abnormal Returns Evaluation: Empirical Study of Romanian Market

摘要

This paper comprehensively explores the DuPont components in order to demonstrate which of three areas influences stock's abnormal behavior the most. The results show an interesting evolution: in 2007 the strong dependence between cumulated abnormal returns and profitability and ROA were founded. The 2008 and 2009 were a middle years which made investors to be unpredictable. The 2010 may be viewed as a returned year, all the data are extremely similar with 2007 year but with different elements. The research is indicating the fact that DuPont components represent an important and viable form of stock's abnormal returns analysis.