Determinants of Share Prices: the Case of Listed Firms on Johannesburg Stock Exchange
Loading...
Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Danubius Journals Platform
Abstract
Equity investments offer considerable returns to investors and is considered to be a major source of capital for most large firms. However, these returns are subject to movement in share prices. This study investigate the determinants of share prices using fourteen companies listed on the Johannesburg stock exchange from 2009-2013. Using a multiple regression analysis, the result reveals that dividend per share, earnings per share, and price-earnings ratio accounts for 57.8% of share prices movements. Furthermore, earnings per share and price earnings are significantly positively correlated to share prices although dividend per share was not. This finding implies that, managers can create value for their shareholders by increasing dividend per share, earnings per share and price-earnings.
Description
Keywords
Share price, Dividend per share, Earnings per share, Price-earnings ratio
Citation
Enow, S.T & Brijlal, P. (2016). Determinants of Share Prices: the Case of Listed Firms on Johannesburg Stock Exchange. Journal of Accounting and Management, 6(1): 85 - 92