International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

Impact Factor* - 6.2311


**Need Help in Content editing, Data Analysis.

Research Gateway

Adv For Editing Content

   No of Download : 778    Submit Your Rating     Cite This   Download        Certificate

A STUDY ON THE IMPACT OF ACCOUNTING VARIABLES ON STOCK PRICES OF NIFTY BANK INDEX COMPANIES

    3 Author(s):  NITHEESH H N, NITHIN KUMAR S, SHAMANTH G

Vol -  9, Issue- 1 ,         Page(s) : 296 - 307  (2018 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

This research project aims to study the impact of the three primary accounting variables, namely Earnings Per Share, Dividend Per Share and Book Value Per Share on the stock prices of the companies listed on the Nifty Bank Index. This would aid investors who are looking at the banking sector in India as a potential investment option to plan and choose their investments in this sector. This research study has made use of the Ohlson’s Least Squares pooled regression model to consider and assess the impact of these three accounting variables on the stock prices of the selected list of companies. The research project has made use of secondary data spread over a period of eight years starting from 2009 to 2017. Upon analysis of results of the study, we have concluded that there is no statistical evidence to imply that there is a significant influence of these accounting variables on the stock prices of the selected listed companies.

1. Ademola, O. J. (2016). Impact of Accounting Information on Stock Price Volatility (A study of selected quoted manufacturing companies in Nigeria). International Journal of Business and Management Invention , 41-54.
2. Arkan, T. (2016). The Importance of Financial Ratios in Predicting Stock Price Trends: A Case Study in Emerging Markets. Finanse, Rynki Finansowe, Ubezpieczenia , 13-26.
3. Asif, M., Arif, K., & Akbar, W. (2016, June 6). Impact of Accounting Information on Share Prices: Empirical Evidence From Karachi Stock Exchnage. International Finance and Banking , 124-135.
4. Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research , 159-178.
5. Brief, R. P., & Zarowin, P. (1999). The Value Relevance of Dividends, Book Value and Earnings. Retrieved from SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=173629
6. Dawar, V. (2014). The earnings persistence and stock prices using empirical evidence from an emerging market. Journal of Financial Reporting and Accounting , 117-134.
7. Dubey, D. D., & Kumari, P. (2016). Impact of Non -Performing Assets on Stock Market Performance od Listed Bank Stocks in India An Imperical assessment of how the two stocks - NPA and Shares are related. IOSR Journal of Economics and Finance (IOSR-JEF) , 16-22.
8. Glezakos, M., Mylonakis, J., & Kafouros, C. (2012, February 1). The Impact of Accounting Information on Stock Prices: Evidence from the Athens Stock Exchange. International Journal of Economics and Finance .
9. H, M. D. (2005, December). Share Prices to Bonus Issue Announcements of Sri Lankan Stock Market. Retrieved from University of Moratuwa: http://dl.lib.mrt.ac.lk/bitstream/handle/123/560/86346.pdf?sequence=1&isAllowed=y
10. Khanna, M. (2014). Value Relevance of Accounting Information: An Empirical Study of Selected Indian Firms. International Journal of Scientific and Research Publications , 1-6.
11. Kohansal, M. R., Dadrasmoghaddam, A., Karmozdi, K. M., & Mohseni, A. (2013). Relationship between Financial Ratios and Stock Prices for the Food Industry Firms in Stock Exchange of Iran. World Applied Programming, 3(10) , 512-521.
12. Martani, D., Mulyano, & Khairurizka, R. (2009). The effect of financial ratios, firm size, and cash flow from operating activities in the Interim report to the Stock Return. Chinese Business Review .
13. Matthew, O., & Odularu, G. O. (2009). The impact of share market capitalization on a company’s performance: A case study in the Nigerian confectionary industry. African Journal of Business Management Vol.3 (5) , 220-226.
14. Mulenga, M. J. (2015). Value Relevance of Accounting Information of Listed Public Sector Banks in Bombay Stock Exhange. Research Journal of Finance and Accounting .
15. Musthafa, S. L., & Jahfer, A. (2013, January). Value Relevance of Accounting Information: Evidence from Sri Lanka. Retrieved from ResearchGate: https://www.researchgate.net/profile/Athambawa_Jahfer/publication/282217632_Value_Relevance_of_Accounting_Information_Evidence_from_Sri_Lanka/links/561005de08aec422d1137e79/Value-Relevance-of-Accounting-Information-Evidence-from-Sri-Lanka.pdf
16. N, B. (2015, February 18). The Share Market Reaction to earnings announcements - a test of efficiency of the Johannesburg Stock Exchange. Investment Analyst Journal , 45-57.
17. Ohlson, J. A. (1995). Earnings, Book Values and Dividends in Equity Valuation. Contemporary Accounting Research , 661-687.
18. S, M. H., S, E. K., & Syed, H. M. (2010). The Study of Relationship between Financial Ratios and Stock Price in Non-Metallic Mine Industries. Financial Accounting , 140-157.
19. Seetharaman, A., & Raj, J. R. (2011, February). An Empirical study on the impact of EPS on stock prices of a listed bank in Malaysia. The International Journal of Applied Economics and Finance , 114-126.
20. Shah, S. (2015). The value relevance of financial and non financial information in Indian corporates. Retrieved from Shodhganga: http://hdl.handle.net/10603/116299
21. Srinivasan, P., & M, N. S. (2010, March 25). An Evaluation of Value Relevance of Consolidated Earnings and Cash Flow Reporting in India. Retrieved from SSRN papers: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2125749
22. The Relationship between Market Capitalization and Profitability of Commercial Banks Listed on the Nairobi Securities Exchange. (2012, October). Retrieved from University of Nairobi Research Archive: http://erepository.uonbi.ac.ke/handle/11295/14556
23. Zohrabyan, T. (2005, December). The Effect of Currency Movements on Stock Markets. Retrieved from Oaktrust Library: http://oaktrust.library.tamu.edu/bitstream/handle/1969.1/3195/etd-tamu-2005C-AGEC-Zohraby.pdf?sequence=1

*Contents are provided by Authors of articles. Please contact us if you having any query.






Bank Details