CAUSALITY AMONG BOOK VALUE, EARNING PER SHARE AND STOCK PRICE: A STUDY OF INDIAN COMPANIES

Authors

  • Om Prakash Agrawal Institute of Business Management,GLA University, Mathura Author

DOI:

https://doi.org/10.61841/1pqsrm65

Keywords:

Stock price,, Regression, Book value,, EPS, correlation

Abstract

-- This research is an attempt to examine the relationship among Book Value (BV), Earning Per Share (EPS) and Stock Price of the selected Indian Companies listed in stock exchange. it is very important for investor to know the factors influencing stock price. To check the relationship among BV, EPS and stock price various statistical tools i.e. regression analysis, correlation and unit root have been applied with the help of E- views. Sample size is of 114 companies listed in Indian stock exchange on the basis of their incorporation before the year of 2000 and data of 19 years have been collected. Findings of the study indicates positive relationship among dependent and independent variable.

 

Downloads

Download data is not yet available.

References

1. Ball, R. and Brown, P. (1968), “An empirical evaluation of accounting income numbers”, Journal of Accounting Research, Vol. 6 No. 2, pp. 159-178.

2. Bekaert, G. and Harvey, C.R. (2017), “Emerging equity markets in a globalizing world”, available at: https://ssrn.com/abstract=2344817; https://dx.doi.org/10.2139/ssrn.2344817 (accessed 20 April 2017)

3. Bonham, M., Richard, C., Curtis, M., Davies, M., Dekker, P., Denton, T. and Williams, T. (2009), International GAAP 2009 under International Financial Reporting Standards, John Wiley and Sons, Chichester

4. Choi, H.S. and Jang, J.I. (2006), “The relative value-relevance of earnings and cash flow measures in each life-cycle stage”, Korean Management Review, Vol. 35 No. 5, pp. 1339-1360

5. Collins, D.W., Maydew, E.L. and Weiss, I.S. (1997), “Changes in the value-relevance of earnings and book values over the past forty years”, Journal of Accounting and Economics, Vol. 24 No. 1, pp. 39-67

6. Gupta, R. and Jayadev, M. (2016), “Business strategy and systemic risk - evidence from Indian Banks Indian”, IIMB-Working Paper No: 503, Institute of Management Bangalore.

7. Holthausen, R.W. and Watts, R.L. (2001), “The relevance of the value relevance literature for financial accounting standard setting”, Journal of Accounting and Economics, Vol. 31 No. 1-3, pp. 3-75

8. Kotze, A.A. (2005), “Stock price volatility: a primer”, Financial Chaos Theory, available at: www.quantonline.co.za/ (accessed 28 April 2017).

9. Kumar, P.C. and Tsetsekos, G.P. (1999), “The differentiation of emerging equity markets”, Applied Financial Economics, Vol. 9 No. 5, pp. 443-453.

10. Lee, T.A. (1974), “Enterprise income: survival or decline and fall?”, Accounting & Business Research, Vol. 40, summer, pp. 178-192

11. Miller, M. and Modigliani, F. (1961), “Dividend policy, growth and the valuation of shares”, Journal of Business, Vol. 34 No. 4, pp. 411-33.

12. Ohlson, J.A. (1995), “Earnings, book values and dividends in equity valuation”, Contemporary Accounting Research, Vol. 11 No. 2, pp. 661-687.

13. Qu, X. and Zhang, G. (2015), “Value-relevance of earnings and book value over the institutional transition in China: the suitability of fair value accounting in this emerging market”, The International Journal of Accounting, Vol. 50 No. 2, pp. 195-223.

14. Rousseau, P.L. and Wachtel, P. (2000), “Equity markets and growth: cross-country evidence on timing and outcomes, 1980–1995”, Journal of Banking and Finance, Vol. 24 No. 12, pp. 1933-1957

15. Tamer, E. (2014), “Value relevance of accounting information: evidence from an emerging market”,

Advances in Accounting, Incorporating Advances in International Accounting, Vol. 30, pp. 176-186.

16. Tracy, J.A. (2013), Accounting for Dummies, 5th ed., Wiley, NJ

Downloads

Published

30.06.2020

How to Cite

Agrawal, O. P. (2020). CAUSALITY AMONG BOOK VALUE, EARNING PER SHARE AND STOCK PRICE: A STUDY OF INDIAN COMPANIES. International Journal of Psychosocial Rehabilitation, 24(6), 4138-4143. https://doi.org/10.61841/1pqsrm65