EARNING PER SHARE & ITS IMPACT ON SHARE PRICE -AUTOMOBILE SECTOR OF PAKISTAN

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.