The value relevance of accounting information on stock market price for the investors’ decision. (With special reference to the financial ratios)

Abstract

Introduction - The purpose of this paper is to examine the value relevance of accounting information on stock market price for the investor’s decisions. This study significant when making investment decisions. Design/Methodology/Approach - Sample consist with 35 manufacturing sector companies and used quantitative approach. Fixed effect panel regression analysis used as the methods of analysis. Findings - EPS, NAVPS, CEPS and NOCFPS have positive and significant relationship with stock market price and DPS has negative and insignificant relationship with stock market price. Conclusion - EPS, NAVPS, CEPS & NOCFPS are highly significant when making investment decisions. DPS is not significant for investors based on this research.