Vol: 13, Issue: 4 2023

Page: 099-110

Effect of Financial Factors on Share Prices

PVR Subrahmanyam

http://doi.org/10.37648/ijtbm.v13i04.007

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