Determinants of share prices: the case of listed firms on Johannesburg Stock Exchange

Loading...
Thumbnail Image

Date

2016

Journal Title

Journal ISSN

Volume Title

Publisher

Danubius University

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. & Brijal, P. (2016). Determinants of share prices: the case of listed firms on Johannesburg Stock Exchange. Journal of Accounting and Management, 6(1): 85 - 92