This research is motivated by dearth of research on the impact of accounting information produced by Pakistani companies on their share prices and is aimed at highlighting the useful ness of accounting information in investment decision making by investors. Top five companies from each of the sectors, excluding the financial services sectors listed on Pakistan Stock Exchange are studied for the years 2006 to 2016. Panel data settings are used to study the impact of accounting information i.e., Earnings on Returns. Three control variables namely, size, profitability and industry type are added in Extended returns model to capture the impact of accounting information on returns. The results show that accounting information i.e., Earnings and Changes in Earnings and profitability are value relevant but the size and industry type have no impact on value relevance
