A Research Journal of Commerce, Economics, and Social Sciences
Online ISSN: 2410-0854
Print ISSN: 1996-2800

Paradigms Journal

Determinants Of Equity Prices In The Stock Market
Author(s) :
Muhammad Usman Javaid (Faculty of Commerce, University of Central Punjab, Lahore, Pakistan)
This study examines the effect of market variables on the movement stock prices in Pakistan. Asset pricing is considered as efficient if the asset prices reflect all available market information. This study examined the extent to which some "information factors" or market indices affect the stock price. A simple regression model has been used to develop a relation between the variables (stock prices, earnings per share, gross domestic product, dividend, inflation and KIBOR) after testing for multi-collinearity among the independent variables. All the variables have shown positive correlation with stock prices with some exceptions of GDP and inflation. This study has enriched the existing literature while it would help policy makers who are interested in deploying instruments of monetary policy and other economic indices for the growth of the capital market
Keywords: Determinants; Equity Prices; Stock Market; Asset Pricing; Information Factors; EPS, GDP, Dividend; Inflation; KIBOR; Pakistan.

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