ACADEMICIA: An International Multidisciplinary Research Journal
Year : 2011, Volume : 1, Issue : 3
First page : ( 8) Last page : ( 23)
Online ISSN : 2249-7137.

Determinants of market price of shares of the select banking companies listed at bombay stock exchange

Dr. Shobhana V. K.*, Dr. Karpagavalli R.**

*Associate Professor & Head, Department of Commerce, Vellalar College for Women (Autonomous), Erode-12, Tamilnadu, India

**Assistant Professor of Commerce, RVS College of Arts & Science (Autonomous), Coimbatore-402, Taminadu, India

Online published on 21 September, 2017.

Abstract

The Indian stock market has witnessed a paradigm shift in the last two decades of economic reforms. Knowledge of the relative influence of fundamental factors on equity prices is useful to corporate management, government and investors. The post reform period witnessed deregulatory initiatives in the banking sector, an important constituent of the financial sector of the economy. The focus of this paper is on the fundamental variables influencing equity prices of ‘A’ Group and ‘B’ Group shares of the banking companies listed at BSE. Correlation and multiple regression analysis were employed in the analysis of data. The findings reveal that company specific factors such as market capitalization and dividend yield have significant influence on the equity prices of ‘A’ group shares and in the case of group ‘B’ shares book value per share emerged significant.

Top