AN EMPIRICAL STUDY ON RELATIONSHIP BETWEEN EARNINGS AND STOCK PRICE OF SELECTED COMPANIES OF INDIA

Authors

  • Dr. Devendrasinh Dalpatsinh Zala Associate Professor Smt K.K. Shah Arts and Smt L.B. Gunjariya Commerce College, Thara

Keywords:

Stock price, Variable, Earning, Economy

Abstract

Important key variables affecting the stock price of a company are supply and demand variables. Prices will definitely go up if there is more demand and more people start buying, and if there is more supply and more people start selling, the company's share price will go down. Government policies, the latest trends in the industry and the performance of the company and the potential people have an impact on the demand behavior of investors in the primary and secondary stock markets. The variables affecting the share price of equity shares can be seen from the macro and micro economic perspective. Macro-economic factors include politics, general economic conditions - i.e. how the economy performs, government regulations, etc. This research researcher has focused on studying the relationship between the earnings of a company and the momentum of the share price, to see the momentum of the share price. Based on the financial performance of the company. Researchers have selected three leading IT companies (Infosys Ltd., Wipro Ltd., Tata Consultancy Services Ltd.) to examine the relationship between earnings and share prices.

References

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III. Determinants of equity share prices in India, Dr. Sanjeet Sharma. Saggar, S. (2005), “Financing and Investment Pattern of Indian Firms”, Economic and Political Weekly, 15th January 2005.

IV. Malakar,B. and Gupta, R., (2018),“Determinants of Share Price-A System Approach: The Modified Model”, Finance India, Vol.16, No.4, December 2018pp.1409-1418

V. Malhotra, V. J. (2017) “ Determinants of Equity Prices in India”, Ph.D. Thesis, Himachal University, Shimla

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VII. Tuli Nishi and Mittal, R.K., (2014), “Determinants of Price-Earnings Ratio, Finance India, Vol.15, No.4, December 2014, pp 1235-1250.

Additional Files

Published

15-01-2021

How to Cite

Dr. Devendrasinh Dalpatsinh Zala. (2021). AN EMPIRICAL STUDY ON RELATIONSHIP BETWEEN EARNINGS AND STOCK PRICE OF SELECTED COMPANIES OF INDIA. International Education and Research Journal (IERJ), 7(1). Retrieved from https://ierj.in/journal/index.php/ierj/article/view/2204