Abstract:
This study is an attempt to examine the impact of dividend declaration and EPS on stock price of
8 listed companies of cement sector of Pakistan which are chosen at random from KSElOOindex.
The stock prices, dividend and EPS ofselected companies are taken from the period of
2009-2014 and average vales are taken of each company for the data analysis. The dependent
variable is stock price and independent variables are dividend and EPS. The methodology used
for the empirical testing is linear regression analysis. The findings of empirical evidence indicate
in the study that the stock prices of all sample of cement sectors change with the change in
dividend and earnings per share. It is statistically proved by this study that dividend and EPS
have a positive relation with the stock price.
