Determinants of Change in Share Price – Case from the Pharmaceutical Sector in Karachi Stock Exchange
[pic 2][pic 3][pic 4][pic 5]DETERMINANTS OF CHANGE IN SHARE PRICECase from the Pharmaceutical Sector in Karachi Stock Exchange12/22/2015IoBMRequested by:Sir Jamal Zuberi Prepared by:Hassan Bilal Iqbal HussainAbdul RehmanAnum Fatima[pic 6]Table of ContentsABSTRACT INTRODUCTION LITERATURE REVIEW METHODOLOGY SOURCES OF DATA SAMPLE SIZE DEPENDENT AND INDEPENDENT VARIABLES HYPOTHESIS: STATISTICAL TOOL CONCLUSION REFERENCES
ABSTRACTIn 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?INTRODUCTIONThe 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 REVIEWThe 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.