Determinants of Share Prices, Evidence from Oil & Gas and Cement Sector of Karachi Stock Exchange (A Panel Data Approach)

Abstract

The aim of the study is to explore & examine the determinants of share price in Karachi Stock Exchange`s (KSE) oil & gas and cement sector. The study has employed a panel data approach on oil & gas and cement sector of Karachi Stock Exchange (KSE) over the period of 2008 to 2013. The fixed effect and random effect model has been used to determine the research objective. The study reveals that earning per share and book value per share are positive and significant determinants of share price in both sectors while dividend yield is negatively significant in cement sector. Overall, the conclusion indicating that model is significant and random effect model is appropriate in both sectors of Karachi Stock Exchange (KSE)

Keywords: Share price, earning per share, book value per share, dividend yield