Impact of Firm Financial Performance on Stock Price. Empirical Evidence from Pakistan Stock Exchange.

Abstract

This study is done to examine the impact of firm financial performance on stock price. This research aims to determine the impact of return on asset, return on equity and earning per share ratios on stock price of the companies listed in Pakistan stock exchange. To investigate the relationship, the quantitative research method is used. Secondary data is collected with the help of annual financial statements of 30 firms listed in Pakistan stock exchange KSE-100 index for the time period of 10 years. This study data is taken from company’s annual report listed in Pakistan stock exchange. The analysis is done by using panel data regression analysis. Based on the results return on asset, return on equity and earning per share has a positive significant impact on stock price on the firms of Pakistan