The Impact of Firm-Specific Factors on the Stock Prices: New Insight from Emerging Market of Asia

Abstract

Purpose: The purpose of this paper is to investigate the factors that can influence the share prices of listed firms. Design/Methodology/Approach: The sample of 120 listed firms was selected from 2014–to 202020 was collected. Findings: We documented a new insight that all the variables have a strong relationship between variables with the share prices except leverage. The ROA and Leverage show a negative relationship with the share price and EPS, dividend per share, firm size and price-earnings ratio show a positive relationship with the share prices. Implications/Originality: This paper contributes to the existing literature and continuing debate about firm-specific determinants influencing share price in an emerging market, with a focus on manufacturing firms of Pakistan.

Keywords

• Determinants
• Share Prices
• EPS, DPS, P/E ratio
• ROA
• Leverage