An Analysis of Accounting Variables and its impact on Market price per Share: Evidence from Nifty Pharma Index Companies of India

A number ofresearch studiesis undertaken by the different countries to identify the information that affects the price per share. Earlier literature shows that a movement of stock price depends up on internal and external factors. Among the different internal factors and other firms specific factors such asearnings per share (EPS), Price to Book Value (P/BV), dividend per share (DPS), Closing Market Price Per share (MPPS) and book value per share (BVPS) is a determining factor that effect stock price. The present study investigated the impact of price to book value, dividend per share, earnings per share, closing market price per share and book value per share of stock price on a sample of 10 Nifty Pharma Index companies listed on the National Stock Exchange (NSE) of India from 2011 to 2017. Subsequently, by using regression analysis, we have analyzed the influence of accounting variables on MPPS. The overall results reveal that EPS, DPS, BVPS are statistically significant and positively influenced the MPPS.