DETERMINANTS OF SHARE PRICE MOVEMENTS - EVIDENCES FROM EARLIER STUDIES

It is very difficult to predict share price of a company, share price of a company is influenced by various factors. Macro economic factors are affecting the whole economy, hence it affects price of almost majority of shares in a market. But factors related to a particular industry affect share prices of the particular industry and variables specifically related to a company influence share price of the particular company. Among specific company factors, accounting factors are playing very important role. The study observed eight key determinants which influence share prices namely Firm Size, Return on Net-worth, Earning per Share (EPS), Price Earnings Ratio (PER), Dividend Yield Ratio, Net Assets Value Per Share, Book to Market Value per Share and Firm Age. The above factors influenced share price movements either positively or negatively in various countries such as India, Srilanka, Nepal, Pakistan, Bangladesh, Nigeria and so on.