The Impact of Accounting Variables on Stock Price: Evidence from the Colombo Stock Exchange, Sri Lanka

Menike M. G. P. D., U. S. Prabath

Abstract


A number of empirical studies have been undertaken by the different countries to identify the factors that affectstock price. Past literature reveals that movements of stock price depend on internal and external factors. Amongthe internal factors, firm specific factors such as dividend per share (DPS), earnings per share (EPS) and bookvalue per share (BVPS) affect the determining of stock price. The present study examined the impact ofdividend per share, earnings per share and book value per share of stock price on a sample of 100 companieslisted in the Colombo Stock Exchange (CSE) from 2008 to 2012. Using a single and multiple regressions modelthe results reveals that EPS, DPS, BVPS were positive and had a significant impact on the stock price in theCSE.

Full Text: PDF DOI: 10.5539/ijbm.v9n5p125

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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