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Indian Journal of Finance

ISSN: 0973-8711 Frequency: Monthly Peer Review: Double-blind Published since: 2007 Language: English
A publication of AMCPL
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Original Article

Open Access Original Article

Determinants of Share Prices: An Empirical Study on the Services Sector in India

Jaideep Gulabrao Jadhav1,  Kunal Shriniwas Badade2

1 Associate Professor, MIT School of Telecom Management, Pune – 411 038, Maharashtra

2 Dean, Faculty of Commerce, Swami Ramanand Teerth Marathwada University, Nanded, Maharashtra

Volume 6
Issue 8
Pages 12–24
Year 2012
Published: Aug. 1, 2012
Abstract

In the last decade and half, many emerging capital markets have undergone drastic changes in terms of markets, micro-structure changes, specifically in secondary markets. The researchers focus on the various determinants of equity share prices with reference to the Indian stock market. Securities investors would be interested in knowing the determinants of pricing of equity shares, which he plans to hold for periods ranging from short to infinity. The objective is to find out the association between Earning Per Share, Dividend Per Share, Dividend Yield, Book Value Per Share and Price Earnings Ratio with the Market Price of equity shares. The final sample of this research study consists of fifteen companies selected from the service sectors like Banking, Health Care and Information Technology in India. The data used for the analysis was collected for the last five financial years. A linear multiple regression model was selected to measure the combined effects of explanatory variables on the dependent variable. The data analysis and interpretation part shows the significant relationship between independent variables and dependent variable.

Keywords Market Price of Equity Share Earnings Per Share Dividend Per Share Book Value Per Share Price Earnings Ratio Dividend Yield Securities Exchange of India Bombay Stock Exchange National Stock Exchange
How to Cite

Jaideep Gulabrao Jadhav, Kunal Shriniwas Badade (2012). Determinants of Share Prices: An Empirical Study on the Services Sector in India. Indian Journal of Finance, 6(8), 12–24.

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