2013•SSRN Electronic JournalOpen access

Impact of Earning Per Share (EPS) on Share Price (Listed Manufacturing Companies in Sri Lanka)

Subramaniam, P Tharshiga

Abstract

The firm’s investment and financing decisions are unavoidable and continuous. In order to make them rationally, the firm must have a goal. It is generally agreed in theory that the financial goal of the firm should be shareholders’ wealth maximization as reflected in the market value of firm’s shares. ten manufacturing companies’ four year data (2009-2012) were taken on random sampling method for this study. Correlation and regression are used to find out the impact of earning per share on share price. Analyzed results revealed there is strong positive relationship between Earning per share and share price. Further earning per share can explain 89.7% on share price of ten sample manufacturing companies in Sri Lanka.

About this research paper

What this paper is about

Why it matters

OpenAlex reports 6 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Share price, Shareholder, Market share, Earnings per share, Business, Sri lanka, Sample (material), Order (exchange)