Business Studies

Business Studies

FACTORS DISTURBING STOCK WORTH VARIABLITY OF SUGAR SEGMENT OF PAKISTAN

Pages: 44  ,  Volume: 53  ,  Issue: 1 , May   2020
Received: 02 Jun 2020  ,  Published: 03 June 2020
Views: 90  ,  Download: 35

Authors

# Author Name
1 Ayesha Khan
2 Muhammad Abdullah Idrees
3 Muhammad Arsalan Khan

Abstract

Stock assumption is always a unreliable proposal. Investors are cautious to put in Stock Market. If investors come to make out concerning the precise factors persuade the stock price, they will spend in dribs and drabs in stocks confidently. This thesis looked at the rational association among the stock price and company’s fundamental factors of Karachi Stock Exchange. The objective of this study is to investigate the factors that effect on share price variability of sugar sector of Pakistan. Ten companies of sugar sector of Karachi Stock Exchange used Panel analysis approach over the period of time from Jan 2011 to Dec 2015, the inspection endeavor to attain proficient factor evaluation as well as to endorse the reliability of the relationship among stock price activities and firm essentials. Data information is scrutinized via four methods: through descriptive statistics method, correlation analysis, regression analysis method and random and fixed effect model. To find out the research objective, fixed effect model and random effect model has been evaluated. The study has ROA (return on assets), ROE (return on equity), EPS (earning per share) and DPS (dividend per share) as illustrative variables and share prices as explained variable. Relationship among variables is determined by correlation; furthermore the alteration in explained variable as a result of explanatory variables is enlightened by means of regression analysis. Conclusion gives an initiative about that 54.09% deviation in explained variable is explain through ROA, EPS and DPS. The study reveal that return on asset is negative and noteworthy determinant of stock price in sugar sector at the same time as earning per share and dividend per share are positive and significant factors of stock price of sugar segment. The study reveals that in broad-spectrum the model is significant and moreover, a specification investigation is carry out to make a assessment either a random consequence or else fixed consequence model is used and according to it random consequence model is appropriate in sugar segment of Karachi Stock Exchange. Investors within Pakistan are obligatory to make a judgment about which stock be believed to purchase. The conclusion of this paper provides training to the investors in stock assortment. At the same time of taking decisions they must take into deliberation about firm information. The companies know how to put their guidelines as well as approach by captivating into account somewhat essential factors, meant for corporation sustained survival and success.

Keywords

  • return on equity
  • Earning per share
  • Stock Price
  • return on assets
  • dividend per share
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