Effect of Financial Factors on Share Prices
PVR Subrahmanyam
Research Scholar, Department of Management, Arunodaya University, Lekhi village, Naharlagun, Itanagar, Dt. Papum pare, Arunachal Pradesh, India 791110
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http://doi.org/10.37648/ijtbm.v13i04.007
Abstract
Financial indicators play a crucial role in evaluating a company's performance and gauging its potential prospects. They serve as essential metrics that directly impact a company's share prices. Consequently, comprehending the relationship between financial indicators and share prices can offer valuable insights into future movements of share prices. The primary objective of this study is to address the significance of financial indicators and establish their correlation with share prices through hypothesis testing, thereby validating this association.
The study commences by emphasizing the importance of financial indicators in assessing a company's performance holistically. It thoroughly examines key financial metrics such as profitability, liquidity, solvency, and efficiency to gain a comprehensive understanding of the company's financial well-being. These indicators act as benchmarks for evaluating the overall strength and growth potential of the company
Keywords: Share Market; Financial Indicators; Performance Measurement; Performance evaluation; Correlation analysis
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