How Earning Per Share (EPS) affects on share price and firm value
Loading...
Date
Publisher
© 2014 European Journal of Business and Management
Citation
Islam, R., Rahman, T., Tonmoy, K., Choudhury, T., & Mahmood, A. (2014). How Earning Per Share ( EPS ) Affects on Share Price and Firm Value. European Journal of Business and Management, 6(17), 97–108.
Abstract
Earnings per Share (EPS) is generally considered most important factor to determine share price and firm value.
Literature shows that most of the individual investors take their individual investment decision based on the EPS.
This paper attempts to provide empirical evidence on how EPS affect the share price movement. We have
collected and analyzed 22 scheduled banks 110 firm year data and found that share price does not move as fast
as the EPS move. We also further found that the share price movement depends on micro and macro economic
factors on the economy. We suggest that investors must consider other factors as well as EPS in order to invest
in the security market.
Keywords
Description
This article was published in European Journal of Business and Management [© 2014 European Journal of Business and Management ] and the definite version is available at : http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/13572/13841 The article website is at: http://iiste.org/Journals/index.php/EJBM/article/view/13572/13841
The journal is licensed under a Creative Commons Attribution 3.0 Unported (CC BY 3.0) License.
Department
Type
Article