CHAPTER ONE

1. INTRODUCTION

1.1 Background of the study:

The variation in share prices occurred due to existence of internal and external
factors. Internal factors include earnings per share (EPS), dividend per share (DPS),
leverage, book value (BV), size and so many other internal factors of the company. And
the external factors which are also called macroeconomic factors may affect the share
prices of the company. Such factors include gross domestic product (GDP), inflation rate,
foreign exchange rate, and interest rate of government policies. These are the factors
which adversely influence the share prices of the company. By the influence of such
internal and external factors the demand and supply of the share prices are regularly
fluctuating in the market. The focus of the research is to ascertain the factors of share
prices commercial banks in Pakistan. To conduct this research, the researchers selected
22 commercial banks as a sample size and seven-year data from 2007 to 2013 was taken
to investigate the relation between the stock prices by using different tests. The model
used to investigate in this study is linear regression analysis to identify the association
between dependent and independent variables. (Arshad, Arshaad, Yousf, & Jamil, 2015)

The factors affecting share prices are always a matter of debate. Financial experts
and the economists have different opinions about the pricings of stocks. Share prices
would be ascertained in the efficient market by using different fundamental variable such
as EPS, payout ratios, DPS, company size, dividend yield (DY), and diversifying their
investments etc. Future share prices are forecasted by using the different ratios to derive
the current fair value of stock and the forecasted value of share. If the current share price
is not equal to the fair value of the firm it means that the stock price is under or
overvalued. Consequently the market price falls towards the fair value of the firm.
Understanding of different variable and their impact on share prices is very important and

1
helpful to the investors, because it will help them in taking decisions about investment in
stock. (Srinivasan, 2012)

Commercial banks are playing key role in the economy of country and are broadly
recognized as the most leading credit agencies. A well-managed, profitable and
competent bank empowers the country and economy to remain competitive and able to
handle any dire consequences. Furthermore a well-organize banking sector boost
attractive economic growth. The banking sectors also administer in the stability of
financial system and prevent a country from unwanted events. (Jamal, Abdul Karim, &
Hamidi, 2012)

Stock Exchange is known as the most significant segment of the country in

financial system. Stock Exchange not only performing the function of raising capital of
firm in the country but also provide the facility of circulating general public's saving.
Stock Exchange also facilitates the prospective investors and provides a plat form to
invest their money in any firm. Share prices at the Stock Exchange are determined by the
supply and demand forces. There are some other factors which can affect the share prices
at stock exchange and are considered as the determinants of the share prices. Such factors
may be social, political and economical. (Javaid 2010)

Stock exchanges are the most significant element of financial system and play a
vital role in a country. It also contributes in the economic growth and development of the
country by raising capital at large level in the economy. Stock exchanges provide the
facility of generating capital for the companies and act as a medium to circulate the
savings of the society. Apart from this stock exchanges also provide the platform for
general public to invest their savings where they want. The prices of the stocks are
ascertained by the forces of supply and demand. And such forces may be in the form of
social, economical and political which can affect the share price of the companies.
(Sanderson & Sunde, 2009)

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1.2 Problem statement:

The study is examining the determinants of share prices of listed commercial

banks in Pakistan. Almumani (2014) conducted a research on the determinants of the
share prices of listed commercial banks in Aman Stock Exchange. Arshad, Arshaad,
Yousf, & Jamil (2015) conducted a study in Pakistan on the same topic taking a time
series of 7 years i.e. from 2007-2013. This study aims to extend the research carried out
by the previous researchers through add more variables with a longer time series i.e. 2013
to 2017.

1.3 Objective of the Study:

The objectives of the study are:

 To identify the determinants that affect the stock prices of listed commercial
banks in Pakistan Stock Exchange.
 To ascertain the relationship of these determinants with the stock prices of listed
commercial banks in Pakistan Stock Exchanges.

1.4 Significance of the Study:

The importance of the study is to classify the factors which influence the stock
prices of Commercial Banks in Pakistan Stock Exchange. This study will be helpful for
existing as well as the prospective investors eyeing investments in different securities or
selling their stocks. The study will also reveal the factors that cause the movement of
stock prices in the banking sector of Pakistan. This research will provide a helpful
document for investors to evaluate the securities. The research is going to be helpful for
banks to design strategies considering the variables affecting the stock prices.

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1.5 Research Questions:

Following are the research questions of the present study:

 What are the determinants that affect the share prices of listed commercial banks
in stock exchange of Pakistan?
 Whether there any linkages or relationships between the determinants and share
prices of listed commercial banks in stock exchange of Pakistan?

1.6 Organization of the Study:

The succeeding part of this research is portrayed in the following way. Chapter one
of this study includes the background, research objective, problem statement, significance
of the research and research questions, Chapter two comprise of literature review which
support this study and the conceptual frame work. Chapter three represents the research
methodology related to data, variables, time span and sample size of the study. Chapter
four comprises the data analysis and findings of the study. Chapter five represents the
conclusion of the research findings, recommendations and limitations of the study. The
major emphasis of this study is listed commercial banks in stock exchange of Pakistan.
The time span of this study is five years i.e. from 2013 to 2017.

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 CHAPTER TWO

2. LITERATURE REVIEW & THEORETICAL

FRAMEWORK

2.1 Literature Review:

Conduct a study to ascertain the effect of EPS on the stock prices in the Stock
Exchange of Johannesburg. For those purpose the authors categorize the EPS into three
different parts diluted EPS, basic EPS, and headline EPS. As a sample size 40 top
companies were selected from the Johannesburg Stock Exchange (JSE) over the period
of 2005 to 2013. Correlation Analysis Technique used in this research to analyze the data.
The finding of the study indicates that the basic EPS has a significant relationship with
the share prices while the headline and diluted EPS shows less significance with share
prices. Furthermore the diluted EPS is more helpful for investors while investing in
different companies and the researchers also suggest that investors should give preference
to the basic EPS while investing their capital in stocks of different firms at JSE.
(Robbetze, Villiers, & Harmse 2017)

The study is conduct to investigate the variables which determine the stock prices in
the Nigerian Stock Exchange (NSE). There are 72 dividend paying companies were listed
on NSE between 2000 and 2011 and these were selected as a sample size for this
research. The independent variables which were selected to direct the study viz, interest
rate, real gross domestic product (RGDP), exchange rate, earnings on every single share,
price to earnings ratio (PER), gearing ratio, return on equity, net asset value/share, and
dividend per share and the share price was taken as dependent variable. To identify the
relationship among the variables correlation and the regression model has been used in
this research. The correlation analysis displays that there is a positive relation among all
the variables except interest rate and price to earnings ratio. It means that if any variable
raises the share price will also go up and vice versa accept interest rate and price to

5
earnings ratio. The results also show that there is a negative connection among the share
price, interest rate, and price to earnings ratio. (Olowookere & Fadiran 2016)

Investment in equity gives significant earnings to stockholders and it is considered

as key source for big firms to raise the money. Though these earnings are cause of
changes in share prices, this study is conducted to examine the factors of share prices. As
a sample size fourteen listed companies were taken from the Johannesburg Stock
Exchange over the period of 2009 to 2013. Multiple Regression Models are used to
analyze the data. The finding of the study uncovers that earnings per share, dividend per
share and price to earnings ratio indicates 57.8% movements in share prices. The results
of the study further explains that price to earnings ratio and earnings per share are
positively significantly correlated to stock prices but dividend per share shows no relation
with share prices. The findings of the study suggest that by increasing earnings per share,
dividend per share and price to earnings ratio managers can generate value for their
stockholders. (Enow & Brijlal, 2016)

Share price is a virtuous measure which depicts and delivers the company's value
and its performance to the stockholders in a well-organize market. It is important for the
perspective stockholders and corporate partners to recognize the variables which can
affect the firm's stock price in the market for better investment decisions. The focus of
this study is on microeconomic factors which determine the equity share prices. The
variables which were selected in this research are earnings per share, dividend per share
BV per share, price to earnings ratio, dividend payout ratio and size of the company. The
findings of the study reveals that the book value/share, and earnings on each share has
positive relation with the stock price while price to earnings ratios, size and dividend per
share has significant association with the share price. And the variable viz dividend yield
has significant inverse relation with the share price. (Adebisi & Lawal 2015)

Direct the study to find out the factors of share prices of commercial banks listed on
stock exchange of Karachi for the time series of 2007 to 2013. The major purpose of this
study is to recognize the internal and external factors and their effect on the share prices.
To find the relationship between dependent and independent variables linear multiple

6
regression analysis has been used in this study. The independent variables which were
selected to conduct the study are namely, earnings per share (EPS), book to market value
ratio, interest rate, gross domestic product (GDP), price to earnings ratio (PER), dividend
per share (DPS), and leverage. The findings of the study revealed that the earnings per
share have strongly positive and meaningful relation with the share prices while book to
market value ratio and interest rate have also meaningful but negative relation with the
share price. However GDP, price to earnings ratio, dividend per share, and leverage have
no relationship with the share prices. The Arthur suggested that the commercial banks
should improve the earnings per share and try to decrease the book to market ratio by
taking correct measurements to increase their share prices. The growth in capital markets
will enormously increase in Pakistan because of the increase in the industrial production.
So it is the responsibility of government to take initiatives to increase the industrial
production by making such policies which support stock prices such as control over
inflation because inflation has inversely relation with the share prices. (Arshad, Arshaad,
Yousf, & Jamil 2015)

A study is conducted to examine the relationship and impact of return on asset and
earnings per share on the share prices. Coal mining firm is used as a sample size for this
study which is listed on the stock exchange of Indonesia for the period of 2009 to 2013.
The data collection method which is used in this study was panel data approach. Three
different regression methods were applied to analyze the data viz; Efek Tetap (Fixed
Effect), Ordinary Least Square Method (Common Effect), and Efek Random Effect. The
findings of the study show that ROA and EPS have a positively significant association
with the stock prices. (Idawati & Wahyudi 2015)

A study conducted aim to identify the determinants that affect the price of shares in
banking sector of Sri Lanka in the Stock Exchange of Colombo. The independent
variables used in this research are DPS, S, EPS, P/E, dividend payout, and BV however
market price of share is considered as a dependent variable. Descriptive as an analysis,
multiple linear regression models and correlation analysis is used to evaluate the data
over the period of 2005 to 2014. The results of the study indicate positive association

7
between share price with DPS, BV, size, EPS, and price earnings ratio. Furthermore the
findings from regression analysis illustrates that there is a reverse association between
share price and company size whereas dividend payout ratio and dividend per share
shows insignificant association and influence with the share prices. (Ahamed Lebbe
Abdul Rauf 2015)

Investigate the affect of microeconomic variables on the financial performance of

the banks. Return on asset (ROA) is used as a measure of the financial performance of
the banks and considered as a dependent variable. Eleven year data was used from the
period of 2003 to 2013 by taking eleven companies as a sample size. The variables which
were considered as independent are financial leverage, size of the bank, deposit-asset
ratio, number of employ loan-asset ratio, net result, liquidity and monetary policy rate.
The findings indicate that the performance or (ROA) is not affected by the size of the
bank, liquidity and loan-asset ratio so these variables have no impact on the bank's
performance. There is a negative relation found between ROA and financial leverage
however there is a positive influence between ROA and variables like deposit-asset ratio,
number of employees and net results. (GUTU 2015)

A study to identify the factors which affect the share prices in the stock exchange of
Bahrain. The data used in this study was taken from the 41 listed corporations in stock
exchange of Bahrain over the period of 2006 to 2010. Share price is used as a dependent
variable and the book value/share, return on equity, price to earnings ratio, dividend
yield, dividend per share, earnings/share, size of the firm, and debt to assets ratio were
considered as independent variables in this research. Different statistical model were
applied to analyze the data such model are; fixed and random effect model, OLS
regression model. The findings of the study reveal that size of the firm, dividend yield;
earnings per share, book value per share, return on equity, and dividend per share were
the key factors of share prices in the Bahrain Stock Exchange and have substantial effect
on the share prices. The outcome of the study further shows significantly positive
association among price to earnings ratio, ROE, BV per share, dividend per share, and

8
size of the firm. While there is a negatively significant association among the share prices
and dividend yield. (Sharif, Purohit, & Pillai 2015)

Conduct the study to explore the factors of stock prices of listed commercial banks
in stock exchange of Nepal. The data is used in this study is taken from the annual reports
of listed commercial banks in the stock exchange of Nepal from the period of 2006-2014.
And the regression model is used to analyze the data. This study contains some
independent variables viz, dividend payout ratio (DPR), dividend yield (DY), price to
earnings ratio (PER), earnings per share (EPS) and size. The findings of the study
uncovered that the price to earnings ratios and earnings per share have the remarkable
positive relation with the share price whereas dividend yield has remarkably negative
relation with the share price. Furthermore, this study revealed that the price to earnings
ratio, dividend yield, and earnings per share are the major influencing determinants to
ascertain the share prices in the Nepalese stock exchange. (Bhattraİ 2014)

Study is investigated the effect of dividend yield, size of the firm and price to
earnings ratio on stock prices. The data was taken from Karachi Stock Exchange by
choosing 11 non-financial listed firms. They took twelve year data from 1998 to 2009.
Advance Econometrics techniques were used to identify the association among variables
and share prices. The result of the study indicates that size and price-earnings ratio have
considerable positive influence on share prices. Dividend yield show key negative
relationship with share price. (Arsalan & Zaman 2014)

The study tries to highlight the effect of macroeconomic elements on the share
prices in the developing stock market of Sri Lankan. For this purpose the researcher
selected the following macroeconomic variables namely, inflation rate, Treasury bill rate,
and exchange rate. The monthly data was collected from the different financial sectors
from the Sri Lankan Stock Exchange. And the time series of this study was 5 years i.e.
from 2008 to 2012. Regression Model was applied in this study to test the data. The
findings of the study reveals that all the variables like inflation rate, treasury bills,
exchange rate are the main cause of movement in share prices all the sectors except
telecom sector. The results also indicates that the inflation rate and exchange rate have

9
key influence on the share prices of all the sectors whereas treasury bill has weak
negative impact on the share prices of all sectors except the telecom and information
technology (IT). Furthermore inflation rate and exchange rate were the dominant factors
in all sectors, and the inflation rate was the most influential factor as compare to the
exchange rate to clarify the movement of share prices in most of the financial sectors.
(Shafana 2014)

Supply and demand are the two key factors which affect the share prices of equity.
The movement in share prices occurred due to buying and selling of shares. Generally,
share price goes up because of buying and move down due to selling of shares. There are
many determinants which disturb the equity share prices in the market. To find the
relationship among equity share prices and its determinants the Arthurs select earnings
per share as an independent variable and took 5 years data from 2009 to 2013. As a
sample size, they took thirteen cement companies which were listed on the securities and
exchange commission of Pakistan (SECP). They used SPSS to evaluate the data in this
study. The results of the study illustrate that earnings on every single share has positive
and meaningful effect on the share prices. (Jatoi, Shabir, Hamad, Iqbal, & Muhammad,
2014)

Conduct a study to examine the impact of microeconomic variables on the equity

Share prices in the stock exchange of Bombay by selecting 80 companies that are listed
in the stock exchange of Bombay. The variables which were selected as an independent
are; earnings per share, cover, return on capital employed, book value/share, price to
earnings ratio, dividend payout ratio, dividend per share, and growth of the firm while
equity share prices are considered as a dependent variable. The time span of this research
was 8 years i.e. from 2006 to 2013. Multiple regression models are applied to evaluate
the data. The findings of the study reveal that dividend per share, cover earnings per
share, growth and return on capital employed are identified as the main determinants of
equity share prices in stock exchange of Bombay. Furthermore earnings per share, book
value/share, price to earnings ratio shows significantly positive relationship with the

10
share prices while dividend payout ratio and dividend per share shows negative
association with the share prices. (Sukhija 2014)

A study is conducted to ascertain the factors that determine the payout policy of
dividends in the stock exchange of Beirut. The variables which considered as an
independent are; size, growth, profitability, dividend payout ratio, risk of the company,
liquidity, and leverage of the firm. Seven years panel data over the period of 2005 to
2011 used in this study. The OLS and Dynamic panel Regression method is used to
analyze the data. The results of the study uncovers that policies related to dividend
payout positively affect the risk, size and dividends paid in last year’s but such policies
are negatively affected by the profitability and growth of the firm. Furthermore the
findings also show that dividends are paid to shareholders with aim to avoid any conflict
between company and shareholders. (Khoury & Maladjian 2014)

A steady dividend policy will be the cause to increase the worth of stock and vice
versa. The study was conducted in Kenya to examine the impact of dividends on the
market share prices. As a sample size 61 companies were selected which were listed on
the Nairobi Stock Exchange, The time series of the study was 10 years, from the period
of 2004 to 2013. Regression Model was applied to evaluate the data. The following
independent variables were used in this study such as dividend per share, return on asset,
and debt to equity ratio while share price is considered as a dependent variable. The
finding of the study reveals that there is a helpful strong connection among the share
price and the dividend per share and it is also found that share prices are influenced by
the dividends paid to shareholders. The results also explain that there is a strong positive
association among all the variables except debt to equity ratio which shows negative
relationship with the share prices. (Munyua, 2014)

Ascertain the elements that affect the share prices of Tata Motors Ltd. They take
earnings per share (EPS), BV per share, price to book value (PBV), market capitalization
(MC), and dividend yield (DY) as an independent variables and share price is considered
as a dependent variable. Fourteen years monthly data was used in this research to analyze
the relationship between the selected variables and stock prices. The statistical model

11
used in this study was correlation and regression method to evaluate the association
among the stock prices of Tata Company Limited and the selected financial factors. The
finding of the study indicates that there is a positively significant correlation among the
stock price and factors except dividend yield. The result also shows that the share prices
are significantly influenced by the price to book value, dividend yield, and BV per share.
(Anita & Yadav 2014)

The study is to investigate the influence of internal determinants on the bank's

performance in Saudi Arabia and Jordan. For this purpose he took some independent
variables such as liquidity risk, size of the bank, cost income ratio, equity to total asset,
total investment to total asset, net credit facilities to total deposits, and net credit facilities
to total asset. Return on asset is considered as a dependent variable. The findings of the
study reveal that liquidity risk, equity and investments have positively influencing the
Saudi banks whereas cost to income ratio, credit facilities, and sizes of the bank have
negatively influencing the Saudi banks. However Jordanian banks have positive relation
with equity, liquidity risk and net credit facilities and positively influencing the Jordanian
banks while investments, cost-income ratio and size of the bank have negatively
influencing the Jordanian banks. (Almazari 2014)

A research is to uncover the association between Singapore Straits Times Index and
macroeconomic variables. The variables which were selected as an independent variable
viz; interest rate, money supply, consumer price index (CPI), exchange rate, and gross
domestic product (GDP) while share price is considered as a dependent variable. The
statistical tool used in this study was Ordinary Least Square (OLS) method to indentify
the relationship among the dependent variable and independent variables. The time span
of the study was 20 years i.e. from 1993 to 2012. The finding of the study reveals that all
the variables have key relationship with the share prices. Furthermore (CPl) and
exchange rate shows negative relation with the share prices whereas money supply,
interest rate, and GDP shows positive relation with the share prices at Stock Exchange of
Singapore. (Hui, Yi, Chyn, Gnoh, & Mun 2014)

12
 Conduct a study to investigate the relationship of dividend policy with stock prices.
The sample size of this study is very large i.e. thirty commercial banks which were listed
on stock exchange Dhaka (DSE). Five years data was used in this study to examine the
relationship among stock prices and dividend policy i.e. from 2007 to 2011. The study
explains that following variables must be measured while identifying the relationship
between stock price and dividends. Such variables are; return on equity, earnings/share,
retention ratio, profit after tax, and dividend yield. The results of the study indicates that
variables like retention ratio, return on equity, and earnings/share have significantly
positive association with the stock prices and are the main cause of movement in the
share prices. Profit after tax and dividend yield has negative and inconsequential
association with the share prices. The overall finding of the study reveals that the
dividend policy has positively significant impact on the stock prices. (Al Masum 2014)

Examine the determinants that affect the share prices. In this research 15 banks
were selected from stock exchange of Karachi as a sample size. Four years data was
taken by the Arthurs from 2008 to 2011-The statistical tool which is used for analysis is
regression model to find the association between dependent variable (share price) and
independent variables. Independent factors include (DY), size, return on asset (ROA),
and asset growth (AG). The findings revealed that the size has a constructive substantial
connection with the share price whereas other factors have no significant relationship was
found. Inflation can adversely affect the stock prices so, to decrease in the changes in
prices, the Arthur suggest that the government should take some measures to reduce the
inflation. It is also recommended that the government should promote the industrial
production by forming such policies which support share prices. (Naveed & Ramzan
2013)

Investigate the affect of determinants on share prices. They choose following

determinants an independent variables for their study like; earnings per share (EPS), price
to earnings ratio (PER), return on equity (ROE), and debt to equity ratio (DER) and share
price is considered as a dependent variable. A small sector which was listed on
Indonesian Stock Exchange (IDE) chooses as a sample size and the time series of their

13
study was 3 years i.e. from 2010 to 2012. Secondary data was used in this study which
was collected from the stock exchange of Indonesian (IDE). Regression model was
applied to analyze the data. The results of the study shows that price to earnings ratio
(PER), earnings per share (EPS) and return on equity ROE have positive significant
relationship with the share prices. Debt to equity ratio (DER) shows negative influence
on share prices. (Ratih, E.P, & Saryadi 2013)

Conduct a research to investigate the determinants which affect the share prices in
diverse stock markets. To find the relationship among the dependent and independent
variables six years data has been taken i.e. from 2007 to 2012 and using linear regression
model. The literature support that ups and downs in share prices occurred as a result of
the firms key factors viz, dividend, earnings, BV per share etc. The finding of the result
reveals that the firm's earnings per share, book value and price to earnings ratio have
showing a positive significant connection with the share price of the firm whereas
dividend yield indicates significantly converse relation with the share price in the market
stock. (Malhotra & Tandon 2013)

A sample size of companies related to financial sector like Insurance, Banks,

Leasing companies etc. Seven year data was taken from stock exchange Dhaka (DSE)
over the period of 2005 to 2011. The aim of their study was to ascertain the variables
which influence and find the share prices. Share price is choose as dependent variable
and the independent variable are; earnings per share (EPS), net profit after tax (NPAT),
price to earnings ratio (P/E), and net asset value (NAV). To test the data some statistical
tools and regression model is applied. The result of their study shows that net asset value,
earnings on each share price to earnings ratio and NPAT have strong association with
stock prices. (Uddin, Rahman, & Hossain 2013)

The study is tried to examine the effect of financial factors on the market share
prices. For this purpose they select some independent variables to identify the
relationship between share prices and selected variables. The variable are; deposits, net
advance, profit before taxes, total liabilities, and total assets however share prices are
considered as a dependent variable. Seven years of data was used in this study from the

14
period of 2004-2011. The listed commercial banks in the stock exchange of Nairobi
Kenya were taken as sample size for this study. The regression model was used to
evaluate the data. The results of the study reveal that the financial indicators are
significantly influence and impact on the share prices of commercial banks in Kenya.
(Macharia & Gatuhi 2013)

A research is to examine the affect of internal factors on the performance of the

bank. They choose some independent internal variables like credit risk management,
deposits of the bank, credits of the bank, liquidity and cost management. However return
on asset is taken as an independent variable and measure of the performance of banks.
The result of the research shows performance is negatively influenced by the liquidity
and deposits of the banks. While cost and credit risk management are showing positive
influence on the performance of the bank. (Nahang & Araghi 2013)

Research is to examine the relationship and impact of macroeconomic variables on

share prices in Stockholm Stock Exchange. Unit root test, Garner causality test and
multivariate regression model is used to analyze the data and test the variables. The time
series of the study was 20 years i.e. from 1993 to 2012. Stock price is considered as a
dependent variable while consumer price index, inflation, exchange rate, money supply
interest rate are considered as independent variable. The findings of the study reveals that
the t-statistics and regression coefficient of currency depreciation and inflation shows key
negative impact on the stock prices whereas interest rate shows negative association with
the share prices. The result also explains that the money supply shows positive
relationship with the stock prices but it does not shows any significance in the model. A
single unidirectional Graner Causal association stock prices and inflation. No any other
unidirectional Graner Causality found among the selected variables and stock prices in
this study. (Talla 2013)

Conducted a study is to examine the share prices of commercial banks in India. The
study consists of time series data for five year (2006 to 2011) on several industries
including manufacturing industry, pharmaceutical industry, energy, IT industry, and
infrastructure and banking industry. The study is based on independent variables namely

15
dividend per share, price to earnings ratio, size and book value per share and share prices
were used as independent variable. The result shows that dividend on every single share
has undesirable and substantial effect on share prices of manufacturing industry,
pharmaceutical industry, and infrastructure as well as energy sector. While size of the
firm is essential factor to find the share prices of all above - mentioned sectors excluding
manufacturing industry. Furthermore, the share prices are positively influenced by the
book value per share of the industries comprise of pharmaceutical industry, IT sector, and
infrastructure sector. (Srinivasan 2012)

The study of explains that there are some financial variables which affect the share
prices. They conduct the study to determine the relationship between the variables and
share prices. They select independent variables like return on asset (ROA) and earnings
per share (EPS) and the dependent variable share price. They use only one year data i.e.
2009 and took 50 listed companies from the electronic database of OSIRS. Multiple
Regression model is applied to test the data. Their findings disclose that EPS has a strong
positive relationship with the share prices whereas ROA has a weak negative association
with the stock prices. (M & Menaje, Jr. 2012)

This study is tries to examine the impact of dividend policy on the stock prices by
emphasis on the 61 companies which were listed on the stock exchange of Nairobi. As a
sample size the author selected 30 global and some domestic companies to identify the
impact of dividend policies on the share prices. Dividend payout ratio and earnings on
each share were taken as measures of dividend policy to know the relationship among the
share prices and the selected variables. Multiple Regression Models was applied in this
study and the time series of the study was ten years i.e. from the period of 2003 to 2012.
The findings of the study reveal that both measures of dividend policy and share prices
have showing positive significant association. Furthermore, that share prices were
significantly influenced by the dividend polices of the firms. The results also explain that
there was no significant impact of dividend policy on the domestic firms. (Ogolo 2012)

Study is investigates the determinants that affect the stock prices. Regression Model
was used to analyze the data and the time series of the study was 14 years i.e. from 1997

16
to 2010 from Pakistan, India and Sri Lanka. Share price is taken as dependent variables
and the independent variables viz; exchange rate, interest rate, foreign direct investment
(FDI). The findings of the study indicate that the FDI and exchange rate have positively
related with the share price. Interest rate shows considerable negative association with
stock prices. Furthermore, the results suggest that the financial managers should use the
macroeconomic tactics which will cause to increase in shareholder’s wealth. (Aurangzeb
2012)

Argue that most of the studies have been focusing on the financial markets of the
developing economies, but the current studies largely focused on the newly created stock
markets. The researcher tries to examine the effect of macro-economic factors on the
share prices of selected industries. Four industries were selected to conduct this research,
industries are; cement, insurance, oil and gas, and chemical industry. Stock prices chosen
as a dependent variable by the authors while interest rate, exchange rate, and consumer
price index (CPI) are consider as independent variables. Regression Model has been
applied to test the data. The findings of the study indicates that oil and gas, cement, and
chemical industry have insignificantly effected by the interest rate, while there is an
significant relationship between interest rate and insurance industry. The result also
explains that consumer price index has significant association whereas exchange rate has
negatively significant relationship with the all four selected industries. (Jasra Azam, &
Khan 2012)

The dividend plays a key role in the company because if a company is offering a
sound dividend to its investors it will attract the prospective investors and retain the
existing shareholders as well. Dividends are the source of income for the shareholders
and are also use as a tool to measure the company's performance in the market. The
author conducts a study to examine the influence of dividends on share prices of chemical
and pharmaceutical industries in Pakistan. Twenty-five listed companies at KSE-100
index are taken as a simple size for this research. And ten years' data was taken from
2001 to 2010. Some variables were used in this study viz; earnings per share (EPS) return
on equity, retention ratio. Fixed and Random effect Model is used to test the data. The

17
findings of the study reveal that return on equity, cash dividend and retention ratio has
constructive and significant association with market share prices. The results also indicate
that stock dividends and earnings per share (EPS) have insignificant negative association
with share prices and show some variations in prices of the chemical and pharmaceutical
industry of Pakistan. (Khan 2012)

Conduct a study to scrutinize the influence of macroeconomic variables on stock

prices. For this purpose they select some macroeconomic variables as independent
variables and stock price is considered as a dependent variable. The independent
variables are; consumer price index, exchange rate, GDP, export, foreign direct
investment, money supply and oil prices. Twelve year data has been selected from
Karachi Stock Exchange i.e. from 1998 to 2009. Multiple Regression Models was applied
to evaluate the data. The finding of the study shows that exchange rate and GDP has
positively significant association with stock prices whereas consumer price index has
negatively significant relationship with stock prices. Furthermore some variable like
money supply, export, oil prices, and foreign direct investment have shows no significant
or influence on share prices. (Khan & Zaman 2012)

Examine the effect of dividend on share prices. The variables used in their study
are, DY, retention ratio, return on equity, earnings on each share and profit after tax.
They took 55 listed companies from Karachi Stock Exchange (KSE) as a sample size for
their study. The findings of their study uncovers that dividend yield, return on equity,
profit after tax and earnings per share have positive association with the share prices
whereas retention ratio shows negatively related with share prices. (Khan, Aamir,
Qayyum, Nasir, & Khan 2011)

In this research investigates the relationship between stock prices and selected
microeconomic variables viz; dividend yield, market average monthly capitalization,
price to earnings ratio and average monthly trading volume in longer period at Dhaka
Stock Exchange (DSE). Johansson co-integration, unit root test and Granger Causality
test is applied to know the association between share prices and selected variables.
Monthly ten year data was used from January 2000 to December 2010. The finding of the

18
study reveals that all the variables have long run equilibrium association between
themselves. Granger causality does not found in dividend yield. While there is found bi-
directional granger causality among price to earnings ratio and trading volume. The result
also explains that there is unidirectional granger causality between market capitalization
and trading volume. (Ali 2011)

Another study was conducted in UK to reveal the impact of dividend policy on

share prices. Their finding shows that dividend yield has constructive relationship with
the share prices while dividend payout ratio has undesirable association with the stock
prices. Their study further explain that there are another factors that influence the stock
prices such factors are; growth rate, earnings of the company, size of the firm and the
debt level of the company (Hussainey. Mgbame, & Chijoke-Mgbame, 2011)

Investigate the impact of macro and microeconomic factors on the profitability of

banks in Pakistan. The variable which were selected as dependent are return on the asset,
return on capital employed, return on equity and net interest margin. However the
selected independent variables comprise of macro and microeconomic variables such as
market capitalization, GDP, inflation, loans, capital of the firm, size of the firm and
deposits of the banks. Their findings reveal that both macro and microeconomic variables
have significantly influences the profitability of the banks in Pakistan. (Gul, Irshad, &
Zaman 2011)

Conduct a study to examine the association between share prices and micro-
economic factors viz; dividend per share, dividend yield, book value per share, earnings
per Share, dividend payout ratio, price to earnings ratio, size and net worth. The findings
other study uncovers that market share prices are significantly influenced by the dividend
per share, earning per share, and BV per share. The results also explains that some
variables like earnings per share and dividend per share shows strong relationship with
share prices and these variables are considered as the strongest factors while determining
the stock prices. (Sharma 2011)

19
 Conduct a study to examine the role dividend policy in defining instability in the
share prices in Pakistan. To investigate these research 73 companies were selected as a
sample size from the Karachi Stock Exchange (KSE-100) index. The panel data was
taken over the period of 2003 to 2008 and fixed affect and random affect models have
been used in this study. The variables of the study are price volatility is taken as a
dependent variable while the independent variables comprise of dividend yield, payout
ratio, asset growth, leverage, earnings volatility and size of the firm. Their finding reveals
that the correlation among dividend yields, payout ratio and price volatility has negative
relation. It means that those firms whose dividend paying ratio is higher the instability in
their prices lowers. And there is a positive significant correlation with price instability
with both size and earnings volatility. There is negative non-significant relationship
among asset growth and price instability. There exists a little positive association among
leverage and price volatility. By applying fixed effect and random affect the reported
results are showing that the KSE-100 indexed company share prices are positively
affected from the changes in the net earnings, dividend yield, and size of the firm.
However asset growth, payout ratio and leverage have negative and non-significant
relation with the share price. (Nazir, Nawaz, Anwar, & Ahmed 2010)

Conduct a research to scrutinize the determinants which affect the stock prices in
Pakistan. The statistical tool used in this research is regression model to identify the
relationship between the variables. Independent variable comprise of GDP, earnings per
share, inflation, dividend, and KIBOR. The result of the study shows that all the variables
are positively correlated with stock prices excluding inflation and GDP. The sample size
for this research Arthur selected all thirty companies which were listed on KSE-30 index
and these thirty companies covers all key sectors of the economy. Three years data has
been used in this research i.e. from 2004 to 2008. (Javaid 2010)

The stock exchanges are the backbone of any economy in the country because these
stock exchanges perform the function of raising money for the business persons and
companies. By using these funds companies expend their operations and format new
businesses. Investors get dividend as reward from their investment. There are following

20
factors which influence the share price in the market such factors may be in the form of
micro or macro factors. In this study the Arthur select the variables viz, net asset value
per share, inflation, interest rate, earnings per share, dividend percentage, and gross
domestic product. From the stock exchange of Amman 14 commercial banks were taken
as a sample size and the time series of the data was taken from 2005 to 2008. To
investigate the relationship between microeconomic variables, simple and multiple
regression analysis has been conducted. Their finding reveals that the gross domestic
product, net asset value per share, earnings per share and dividend percentage has a very
positive significant association among the market price of the stock while lending interest
rate and inflation rate have negative significant relation with the market price of the
stock. (Shubiri 2010)

Conduct a study to examine the effect of announcements of dividends on the stock

prices. They choose a sample size of 79 companies which were listed on the Karachi
Stock Exchange. And the four year data was taken in this study over the period of 2004 to
2007, Findings of the study shows positive relationship between the dividends and share
prices either the dividends may be in the form of cash or in the form of stock dividend.
(Akbar& Baig 2010)

Changes in stock prices are the key indicator of the economy. The objective of this
study was to determine the short run and long run relationship between macroeconomic
variables and Lahore Stock Exchange in Pakistan. To investigate the variables monthly
data was taken during the period of December 2002 to June 2008. Vector error correction
model was used to examine the association among stock price and variables. The
independent variable comprise of consumer price index, inflation, real affective exchange
rate, money supply, and industrial production index. The findings of the study reveals
that inflation has negative effect on stock prices in a long run whereas money supply, real
effective exchange rate and industrial production index shows positive impact on the
stock price. By concluding their study they recommended that the suitable monetary
actions should be taken by the monetary supervisors to control the inflation so that the
riskiness in the stock market can be diminishing. The upsurge in the industrial production

21
can show a key role in the growth of capital market in Pakistan. So it is recommended
that authorities should make such policies which support the share prices through the
advancement in the industrial production. It is important that to keep a close look on
working of stock market by the competition commission. (Sohail & Hussain (2009)

2.2 Theoretical Framework

The theoretical framework of the study describes the selected variable.

Independent Dependent Variable

Variables

Dividend payout Ratio

Dividend per share

Price Earnings Ratio Share Price

Leverage

Price Earnings Ratio

Returned on Asset

22
2.3 Summery of literature review:

AUTHOR COUNTRY DEPENDENT INDEPENDENT RELATIONSHIP

VARIABLE VARIABLE B/T DV & IV

Robbetze, Johannesburg Stock Prices Diluted EPS, More Positive

Villiers, &
Basic EPS, less Positive
Harmse (2017)

Headline EPS less Positive

Olowookere & Nigerian Stock Prices Interest rate, Negative

Fadiran (2016) Real GDP, Positive

Exchange rate, Positive

EPS Positive

PER, Negative

Gearing ratio, Positive

ROE, Positive

Net asset Positive

value/share,

DPS. Positive

Enow & Brijlal, Johannesburg Stock Prices PER Positive

(2016)
EPR Positive

DPS No Relation

23
Arshad, Arshaad, Pakistan Stock Prices EPS Positive
Yousf, & Jamil
Book to market Negative
(2015)
value

Interest rate Negative

GDP No Relation

PER No Relation

DPS No Relation

Leverage No Relation

Ahamed Lebbe Colombo Stock Prices DPS, Negative

Abdul Rauf
S, Positive
(2015)

EPS, Positive

P/E, Positive

Dividend payout, Positive

BV Positive

Bhattraİ (2014) Nepal Stock Prices DY Negative

PER Positive

EPS Positive

Arsalan & Pakistan Stock Prices Size Positive

Zaman (2014)
PER Positive

24
 DY Negative

Ratih, E.P, & Indonesian Stock Prices EPS Positive

Saryadi (2013)
PER Positive

PER Positive

DER Negative

Malhotra & Philippines Stock Prices EPS Positive

Tandon (2013)
BV Positive

PER Positive

DY Negative

M & Menaje, Jr. Nairobi Stock Prices ROA Negative

(2012)
EPS Positive

25
 CHAPTER THREE

3. RESEARCH METHODOLOGY

This study of panel regression to investigate the relationship with the selected
variables on the share prices of listed commercial banks in Pakistan Stock Exchange
(PSE).

3.1 Data and Sample Period:

As sample size of 12 listed commercial banks are selected to examine the

determinants of stock prices of listed commercial banks in Pakistan Stock Exchange for
the period of 2013 to 2017. The data associated with the stock price, earnings per share,
return on asset, price to earnings ratio, dividend per share, leverage, and dividend payout
ratio, are collected from the annual reports of the different banks and Pakistan Stock
Exchange website.

3.2 Variables:

In this research stock price is considered as a dependent variable whereas earnings

per share, price to earnings ratio, dividend per share, leverage and price to earnings ratio,
are considered as independent variables.

3.2.1 Market Share Price:

As discovered by the researchers like, Piotroski & Roulstone (2004) the variation in
share prices due to increase or decrease in selling and buying demand and supply of
shares. Due to such variations in share prices in the market. It is difficult to choose
market price as a measure of dependent variable. In this study market share prices of the
banks has been taken as dependent variable and closing price of the banks share has been
taken as a market price of share in this study.

26
3.2.2 Earnings per Share:

Earnings per share show the company's profitability and it is calculated as:

Formula of Earning per share:

EPS= Net Profit after Tax /Total No. of Shares Outstanding

3.2.3 Dividend per Share:

Dividend per share is the amount of dividend paid on a single share by the firm to
its shareholders. It can be calculated in two ways:

Formula of Dividend per Share:

DPS=Annual Dividend Paid/No. of Shares Outstanding

3.2.4 Price to Earnings Ratio:

P/E ratio tells how the stock is valued either it is overvalued or undervalued. It is
calculated as:

Formula of Price of Earning Ratio:

P/E Ratio=Market Value per Share/Earnings per Share

3.2.5 Dividend Payout Ratio:

Dividend payout ratio shows that how well a company is paying their earnings to its
shareholder. It is calculated as annual dividend paid divided by net income. The formula
used to calculate dividend payout ratio dividing dividend per share by earnings per share.

Formula of Dividend Payout Ratio:

DPR= Dividend per Share/Earnings per Share

27
3.2.6 Leverage Ratio:

This ratio illustrates the level of debt acquired by the company or the portion of the
company’s Assets financed by debt instead of shareholder's equity. It can be calculated
as:

Formula of Gross domestic product:

Debt /Equity Ratio= Total Liabilities/Shareholder's Equity

3.2.7 Return on Asset:

Return on asset indicates that how efficiently a company utilizes its assets to earn
profit. It can be calculated as:

Formula of Return on asset:

ROA= Net Income/Total Assets

3.3 Models:

The research model used in this study is as follows:

S.P = β0 + β1EPS + β2DPS + β3PER + β4DPR + β5LEV + β6ROA+ Ԑ Where

SP = Share Price

B0 = Constant term (the intercept)

B1 EPS= Coefficient for Earnings per Share

B2 DPS= Coefficient for Dividend per Share

B3 PER= Coefficient for Price to Earnings Ratio

B4 DPR= Coefficient for Dividend Payout Ratio

28
B5 LEV= Coefficient for Leverage

B6 ROA= Coefficient for Return on Asset

Ԑ= Error Term

3.4 Hypothesis:

The hypothesis of present research is based on the literature discuss above to

examine the determinant affecting share prices in various stock markets.

H1: There is a positive relation between DPS and share prices.

H2: There is a positive relation between EPS and share prices.

H3: There is a positive relation between P/E and share prices.

H4: There is a positive relation between DPR and share prices.

H5: There is a negative relation between LEV and share prices.

H6: There is a negative relation between ROA and share prices.

29
 CHAPTER FOUR

4. RESULT AND ANALYSIS

4.1 Descriptive statistics

SP DPR (%) EPS PER DPS LEV (%) ROA (%)

Mean 64.485 0.544625 8.8221 7.2246 8.1020 11.812 1.309

Maximum 234.51 1.600000 24.180 30.757 36.740 20.502 2.670

Minimum 5.2900 0.075000 0.9400 3.9033 0.1000 0.0469 0.300

Std. Dev. 61.070 0.480158 7.2890 3.6321 11.404 5.1707 0.569

Observations 60 60 60 60 60 60 60

Cross sections 12 12 12 12 12 12 12

The above table shows the descriptive statistics of the findings of the study .It
illustrates that the six independent variables and their impact of the 12 commercial banks
listed on the stock exchange of Pakistan. The findings indicate that the mean price of
share is 64.48517 and its range from 5.290000 to 234.5100 with a standard deviation of
61.07056. The mean value of the dividend payout ratio is 0.544625 with minimum value
of 0.075000 to maximum 1.600000. The mean value of earnings per share is 8.822167
with a minimum range of this variable is 0.940000 to 24.18000 with standard deviation
7.289035. Price earnings ratio shows with average price of 7.224662 with the standard
deviation of 3.632108 and its range is 3.903340 to 30.75726. The average of dividend per
share is 8.102000 and with a minimum value of 0.100000 to maximum of 36.74000. The

30
average value of return on assets is 1.3092 and its range starts from 0.3000 to 2.6700 with
a deviation value of 0.5694. the mean value of leverage is 11.81250 with a standard
deviation of 5.170704 with a minimum value of 0.046944 and the maximum value of
20.50286.

4.2 Regression Analysis:

To know the appropriate estimations model Hausman test was conducted either
random effect model should be use or fixed model. After running the both we have
selected the Random effect model because it is more appropriate instead of fixed effect
model for the analysis. So fixed effect model will be used in this study for estimations.

4.2.1 Redundant Fixed Effects Tests:

Pool: POOL
Test cross-section fixed effects

Effects Test Statistic d.f. Prob.

Cross-section F 5.416649 (11,45) 0.0000

Cross-section Chi-square 50.599191 11 0.0000

The above result shows after running the redundant fixed effect model probability is
highly significant. So going further we are using Hausman test which is also famous as
Correlation Random Effect Test which include random affect model (REM).

31
4.2.2 Correlated Random Effects Hausman Tests

Pool: POOL
Test cross-section random effects

Chi-Sq. Chi-Sq.
Test Summary Statistic d.f. Prob.

Cross-section random 2.562484 3 0.4641

The result shows that the probability of test is highly insignificant which further
refers to another model which is knows as Random Effect Model (REM) that is final
model for this research.

4.2.3 Random Effect Model (REM)

Dependent Variable: SP_?

Method: Pooled EGLS (Cross-section random effects)
Date: 01/03/19 Time: 18:39
Sample: 2013 2017
Included observations: 5
Cross-sections included: 12
Total pool (balanced) observations: 60
Swamy and Arora estimator of component variances

Variable Coefficient Std. Error t-Statistic Prob.

C -28.94778 6.221711 -4.652704 0.0000

EPS_? 4.578018 0.871196 5.254867 0.0000
PER_? 5.046148 0.354010 14.25427 0.0000
DPS_? 2.047419 0.530532 3.859183 0.0003

32
Random Effects (Cross)
ABL—C -0.525499
BAFL—C 3.605071
BAHL—C 3.262205
BOK—C 2.931214
HBL—C -7.305866
HMB—C 1.750747
MCB—C 16.02833
MEBL—C 2.686449
NBP—C -7.023046
SCBPL—C -2.600947
SNBL—C -1.825613
UBL—C -10.98304

Effects Specification
S.D. Rho

Cross-section random 8.060134 0.5322

Idiosyncratic random 7.556204 0.4678

Weighted Statistics

R-squared 0.926853 Mean dependent var 24.93299

Adjusted R-squared 0.922935 S.D. dependent var 27.11262
S.E. of regression 7.526629 Sum squared resid 3172.408
F-statistic 236.5286 Durbin-Watson stat 2.465020
Prob(F-statistic) 0.000000

33
 The conclusion of the result shows that coefficient of variables is highly significant
which show that separately each variable (EPS, PER, and DPS) which is above
mentioned in the result has enormous effect on share price .The variable coefficient is
highly significant because there are other variables which effect on Share Price. If there is
1% change in Earning per share probability it will increase EPS price value by rupees
4.578018. If Price earnings ratio probability increase 1% it will increase 5.046148 price
of PER also if this is change of 1 % in dividend per share will increase its price of Rs
2.047419. The cumulative coefficient of variables is -28.94778 later results also shows
individual coefficient of each Bank

ABL--C -0.525499

BAFL--C 3.605071

BAHL--C 3.262205

BOK--C 2.931214

HBL--C -7.305866

HMB--C 1.750747

MCB--C 16.02833

MEBL--C 2.686449

NBP--C -7.023046

SCBPL--C -2.600947

SNBL--C -1.825613

UBL--C -10.98304

Weighted Statistics:
R-squared 0.926853

Adjusted R-squared 0.922935

Prob(F-statistic) 0.000000 Durbin-Watson stat 2.465020

34
 Shows estimation results for all variables. Value of adjusted R2 is 0.92 which is
92%. The value of R2 shows that when there is change in independent variable, out of
total are price, 92% change is due to change in all independent variables while remaining
8% change share price is due to other variables which we haven't included in our model.
Value of adjusted square is used to study the prediction power of the model. It is
relatively better predictor as compare to R2 because it does not change with each variable
included rather its values only increase or decreases when a relevant variable is included
or excluded respectively.

The above table shows that the value of F statistics is 236.5286 and its probability
value is 0.000, its confidence level is more than 90% and significance level is less that
10%. The values tell above the fitness of model which shows that all of the independent
variables collectively explain the share price.

The empirical result of the regression analysis illustrates positive and highly
significant relation between the DPS and share of commercial banks. This outcome
basically means that increase or change in one unit of dividend per share will cause to
increase in market price of share by 2.05. This outcome of the study supported by the
previous author findings by arguing that dividend per share will cause an increase in
share prices (Adebisi & Lawal 2015). With the help findings the H1 is accepted.

Another experiential result from the regression analysis indicates that EPS has a
positive and highly significant relationship with the share price of commercial banks. It
means that if increase in one unit of EPS will bring the significant increase in share price
of commercial banks 4.578. The statement ported by the previous research saying that
EPS is a key determinant of share price. (Gunadi & Kesuma 2015), so the H2 is accepted.

PE ratio’s result shows positive highly significant relation with the share price. It
means that with the increase or change in PE ratio will cause to increase the share price
of banks 5.046. This result supported the result of (Malhotra& Tandon 2013). Hence the
H3 is accepted.

35
 CHAPTER FIVE

5. CONCLUSION & RECOMMENDATIONS

5.1 Conclusion:
Commercial banks offer different investment opportunities for their prospective
investors and it is dilemma for a common investors to identify the factors that influence
the share prices especially in banking sector.

The aim of this study was to identify the relationship between selected variables of
share prices of listed commercial bank in Pakistan stock exchange (PSE). To
accomplished the objective of the study that to identify the determinants and their
relationship with the share prices of commercial banks listed on PSE. The study used the
data of 12 commercial banks listed on PSE over the period of 2013 to 2017 which cover
the time span of 05 years. The study has taken earnings per share, dividend per share,
price earnings ratio, dividend payout ratio and return on asset.

Based on the findings of the study it is concluded that all the variables have
significant impact on the share prices of banks except the variables leverage, return on
assets and dividend payout ratio. The findings also conclude that all variables have
positive influence on the share price of banks in Pakistan. To ascertain the relationship of
determinants with the share price study employs the random effect model panel data
regression analysis.

The result of the study proves that majority of the findings the studies are lined with
the study of previous researchers. The estimation result signifies that these variables have
significant impact on the share prices. So the decision makers and investors should take
these variables in their consideration while making investment decisions in commercial
banks of Pakistan.

36
5.2 Recommendations:

In light of the empirical analysis of this research following recommendations should

be taken into consideration to improve the share prices of commercial banks.

Share price of banks can be improved by increasing the income like banks should
efficiently utilize its resources to increase its wealth which ultimately increase the
shareholders wealth so banks should try to improve their earning per share and price
earnings ratio. If the banks have high EPS it means that the financial position of the
banks are outstanding and investors can invest their capital without any hesitation and it
will give a positive signal to the investors.

Banks can increase their share price by minimizing cost of those assets whose
return is minimal so banks should utilize their assets properly and efficiently to increase
the return on asset which will bring the change in share price of the banks.

5.3 Future Research:

This study carries out to determine the relationship of variables on the share price of
listed commercial banks in Pakistan. The study is limited to the 12 banks due to time
constraint. This study covers 05 years i.e. from 2013 to 2017. Further research can be
conducted with the addition of more banks, time span and more variables like net asset
values, return on equity, dividend yield and book value on share etc.

37