Which factors affect the stock price of companies listed on the Stockholm Stock Exchange?

Abstract: Being successful at stock trading requires good analytic skills combined with some luck and understanding. The stock price will either move up or down depending on the condition of different influential factors. This thesis uses multiple linear regression analysis to examine important types of internal factors within companies that explain the upward or downward movements of their stock prices. Generated results in this thesis are compared to well-known financial tools for valuing stocks to examine whether or not the conclusions support the financial theory. Considering that this study is based on the stock market, which is composed of great complexity and inefficiency, most of the computed results were insignificant. The correlation identified were employees, share outstanding, dividend per share and a covariate named ”combined” representing non-current assets, non-current liabilities and revenue. All of these showed a positive correlation except for share outstanding that showed the opposite relationship. The conclusion of this thesis is that investors have to allocate more time and energy to examine the correct variables to increase the probability of future gain. Obtaining a final model containing variables that contribute to an adjusted R squared-value of 72.92 % means that these four variables are worth including when considering investing in companies' stocks.