Determinants of Change in Share Price - Case from the Pharmaceutical Sector in Karachi Stock Exchange
Autor: Hassan Bilal • February 5, 2016 • Research Paper • 2,841 Words (12 Pages) • 1,153 Views
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DETERMINANTS OF CHANGE IN SHARE PRICE
Case from the Pharmaceutical Sector in Karachi Stock Exchange
12/22/2015
IoBM
Requested by:
Sir Jamal Zuberi
Prepared by:
Hassan Bilal
Iqbal Hussain
Abdul Rehman
Anum Fatima
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Table of Contents
ABSTRACT
INTRODUCTION
LITERATURE REVIEW
METHODOLOGY
SOURCES OF DATA
SAMPLE SIZE
DEPENDENT AND INDEPENDENT VARIABLES
HYPOTHESIS:
STATISTICAL TOOL
CONCLUSION
REFERENCES
ABSTRACT
In this paper, efforts will be made to review and discuss several information and findings in regards to the determinants of Change in Share Price with some previous logical research work related to these theories. For the purpose of this research we have taken firms that are listed in the Karachi Stock Exchange-100 Index (KSE-100). It is somewhat difficult not to think of the stock market as a person: it has moods that can turn from oversensitive to over joyous; it can also respond hurriedly one day and make corrections the next. There are various variables that are taken into consideration to reach to a conclusion in this report. The independent variables used are Firm Size, Profitability measured by Return on Asset (ROA), Dividend Yield, Debt Ratio and Current Ratio. The independent variable used is change in share price which is also referred to as stock market volatility. Do these variables provide us with practical strategies for stock selection? Do they have a relation with the stock price volatility?
INTRODUCTION
The research talks about the impact of various ratios or variables on the share price of the companies in the pharmaceutical industry. For that purpose we have taken four companies as our sample for determining the impact on the share price. The companies chosen are from the pharmaceutical industry and the companies are, Searle, Sanofi Aventis, GlaxoSmith Kline and Abbot Pharmaceuticals.
LITERATURE REVIEW
The literature review would help the researcher to make judgement on the value of each piece of work that was read. There are many related articles or literatures that attempt to link various ratios to that of volatility as well as its returns and try to investigate the impact of investor sentiments on the volatility of prices.
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