Citation:Manoji, L.P. and Karunarathne, W.V.A.D. 2016. Impact of Firm Specific Factors on Stock Market Prices: A Study of Listed Hotel & Travels Companies in Sri Lanka. In Proceedings of the Undergraduates Research Conference - 2016, 11th January 2017, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
Date:2016
Abstract:
The impact of firm specific factors on stock market prices is one of a popular
area in Accounting Based Capital Market Research. Investors desire to buy
shares of listed companies in Colombo Stock exchange (CSE) to maximize
their wealth. Therefor share prices are very important one to investors and
other related parties. The objective of present study is to provide empirical
evidence on the impact of firm specific factors on the stock market price in
listed hotels and travels companies in Sri Lanka. The study sought to examine
by using the selected listed hotel & travels companies in the CSE during 2010
to 2015. Secondary data were collected from the annual reports of the hotel &
travels companies and used random sampling method by selected the sample
for the study. These data were analyzed using SPSS software through
descriptive and inferential statistics such as measuring central tendency &
dispersion, Correlation analysis and Regression analysis. The findings are
indicated that a significant positive impact of dividend per share and book
value per share on stock market prices. There is a significant negative impact
of return on equity and dividend yield on stock market prices. Hence the study
will be concluded that firm specific factors are important and also affecting on
companies’ stock market price.
