How Earning Per Share (EPS) affects on share price and firm value

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.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.Publishe

How Earning Per Share (EPS) Affects on Share Price and Firm Value

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

Domestic and International Trade Liberalisation of the Indian Economy: Domestic firms & MNCs response

Over the past two decades trade liberalisation has become an important part of many countries development strategies. Winters L. A. (2004) describes trade liberalisation is the elimination of or reduction in the trade rules that prevent free flow of products or services from one country to another. It may contain dismantling of fare for example duties, surcharges, and export subsidies as well as nontariff barriers like licensing regulations, quotas, arbitrary standards etc. With the start of improvements and liberalisation the Indian economy in the month of July, 1991, a new period has emerged for India and its billion plus inhabitants. This era of economic shift has had a remarkable influence on the overall economic growth of almost all the major areas of the economy, and its effects over the last decade cannot be overlooked. Further, it also results the initiation of the actual integration of the Indian economy into the global context. Objective of this paper is to find what has been the response to this challenge from the domestic corporations of India and implications for the MNCs which are seeking opportunities for locating or relocating their subsidiaries over there. Key Words: Trade Liberalisation, Multinational Company (MNC), Domestic Corporations, PESTLE analysis, Global Economic Challenge, Foreign Direct Investment (FDI), Economic Structure, GDP

The Austrian and Keynesian business cycle theory and its effectiveness to combat recession-A case study in construction industry in United Kingdom

Business cycles are the “ups and downs” in economic activity, defined in terms of periods of expansion or recession. This paper attempted to find out empirical evidence of effectiveness of Austrian and Keynesian theory of business cycle when a country is in recession and how to combat the recession. The study investigates UK economic data from 2003-2013 derived from Trading Economics Website and office of the National Statics UK. This study concludes that in the boom period Keynesian theory is effective as interest rate was low and government spending was high to stimulate demand. In recessionary period it is found that government money supply was very high but production of capital goods was very poor which means Keynesian theory has not been applied. But the recent booming period evidenced that interest rate is low and govt spending high