Value Relevance of Earning Per Share (EPS) and Net Asset Value Per Share (NAV)

Download or read book Value Relevance of Earning Per Share (EPS) and Net Asset Value Per Share (NAV) written by Muhammad Shahin Miah and published by . This book was released on 2018 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main obiective of this study is to investigate the extent of association between stock price and two influential accounting variables (i.e. earnings-per-share and net asset value per share) to measure the relevance of accounting information' This study is based on accounting information which are available in DSE data base and published annual reports of 105 companies from 2000 to 2010. lt is found that only 6.5% of changes in share price can be explained by changes in defined accounting variables. Through Multiple correlation analysis with the help of user friendly statistical software it is found only 25.4% correlation between share price and the defined two independent variables' On the other hand considering individually there is a negative correlation between share price and NAVPS of the sample company' lt is also found that there is only 1.9% relationship between EPS and NAVPS' According to the present empirical evidence, investors tend to focus on information other than the published accounting information such as non financial information, short term capital gains and tend to be speculative or irrational for unusual events.