THE VALUE OF PROFIT AND EQUITY INFORMATION TO THE ONSTRUCTION ENTERPRISES LISTED IN BOVESPA

Abstract

The study evaluates the explanatory power of net equity, stock price, profit or companies loss, as individually and as together, in the construction companies listed in Bovespa, from 2nd quarter 1998 to 4th quarter 2007. The results reveal that both, net income, and the net worth, had weak correlations. Even a weaker results was found applying for tests performed with the variables individually. It can be concluded that there is difference in power explanatory net profit and shareholders' equity on the stock price for the companies who belongs to the segment of construction listed in the Bovespa. Although the correlation is weak, is visible that you can explain the net profit by using individually analyses if you compare with examined equity. Analyzing both variables, net income and net worth, there is no gain in explanatory power in the stock price.