Abstract:
Purpose
This study aims to find the response by stock market against the announcements of earnings.
Also, is E.P.S is the only factor causing fluctuation in share price or do we have any other factors
existing which causing change in share price offirm.
Methodology & Design
This research is based on secondary data, and is a quantitative research.
Findings
The finding revealed that there is a positive relation between EPS & share price. Study further
revealed that there are some other factors aswell which impose some impact on share price
fluctuation other than EPS.
Limitations
The thing which limiting was only the relevant data like I wanted to take sample data for 20
years but could not manage to find 20 years of relevant & reliable data, so have to limit this
research for 10 years ofperiod only.
Practical Implications
The behavior of Pakistani Stock Market is of much concern with regards to announcement of
earning.
Social Implications
All stakeholders closely watch earnings announcements and its share price movement around the
announcement date. And as Pakistan is growing & will open doors for further new investments
& allow foreign traders to take participate in activity, results might be different.
