Key Variables Affecting the Stock Prices of Listed Companies in Pakistan

Abstract

The purpose of this research is to determine the impact of firm-specific variables on the stock prices of publicly listed firms. This study adds to the existing literature and ongoing debate about firm-specific factors influencing stock price in an expanding market, with a focus on the cement sector in the PSX. Several research have been conducted to determine the elements that influence stock prices in various stock markets. The purpose of this study is to investigate the impact of firm-specific variables of stock prices on the stock prices of reference firms listed on the Pakistan Stock Exchange (PSX) with in the cement sector [1] [3]. This study uses data from 07 public listed cement companies on the PSX for the period of four years from 2017 to 2020. Annual reports, the site of State Bank of Pakistan, and the site of Pakistan Stock Exchange were used to compile the database. This study examined statistical analysis approaches such as descriptive statistics, correlation matrix, and ordinary least square (OLS) regression on given data. The findings revealed that firm specific factors (EPS, DPS, and Firm-Size) have a huge impact on stock prices in Pakistan