The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies
Journal of Finance and Accounting
Volume 5, Issue 3, May 2017, Pages: 115-122
Received: Jun. 3, 2014;
Accepted: Jun. 13, 2014;
Published: May 27, 2017
Views 2817 Downloads 181
Muhammad Aamir Ali, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Usama Kalim, Deparment of Management Sciences, Comsats Institute of Information Technology, Islamabad, Pakistan
Hasnain Raza, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Hafiz Amir Ali, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Mohsin Rehman, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Muhammad Ismat Ullah, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
The purpose of this study is to examine the relationship among ROA, ROE, ROCE and EPS ratios together and separately with Break-up Values of Shares Karachi-Pakistan fuel and energy listed companies during the period (2006-2011). Because the fundamental view says that the market prices of shares follow the intrinsic values of shares. The empirical results suggest that collectively these ratios except ROE show significant positive relationship with break-up values of shares and separately ROA, ROCE and EPS show significant positive relationship with break-up values of shares whereas ROE shows insignificant positive relationship with break-up values of shares separately.
Muhammad Aamir Ali,
Hafiz Amir Ali,
Muhammad Ismat Ullah,
The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies, Journal of Finance and Accounting.
Vol. 5, No. 3,
2017, pp. 115-122.
Brian KELLY, WickloW (2013),” Pub. No.: US 2013/0275335 A1 Pub. Date: Oct. 17, 2013”
J. G. Agrawal1, Dr. V. S. Chourasia, Dr. A. K. Mittra (2013),” State-of-the-Art in Stock Prediction Techniques” International Journal of Advanced Research in Electrical, Electronics and Instrumentation Engineering Vol. 2, Issue 4, April 2013.
Ms. Panda Shradhanjali (2013).”Multiplier Approach Vs Constant Growth Model: Valuation of Selected Indian Pharma Stocks” Asiam Journal of Research in Business Economics and Management Vol: 3, Issue: 10 (pages 106-116).
Bihari, Suresh Chandra; Charde, Sumit Kumar (2014),”Intrinsic value of stocks: Does Market Appreciat It? A study on Three Major Private Banks in India” Economy, Business and Management, issued 1/2014 page range 53-74.
Chandrapala Pathirawasam & Guneratne Wickremasinghe (2011),” Impact of Information Technology Adoption on Value Relevance of Accounting Information: Evidence From the Colombo Stock Exchange” Journal of Modern Accounting and Auditing, ISSN 1548-6583 July 2011, Vol. 7, No. 7, 680-688.
Dr. Majed Abdel Majid Kabajeh, Dr. Said Mukhled Ahmed AL Nu’aimat & Dr. Firas Naim Dahmash (2012),” The Relationship between the ROA, ROE and ROI Ratios with Jordanian Insurance Public Companies Market Share Prices” International Journal of Humanities and Social Science Vol. 2 No. 11; June 2012.
Md. Reiazul Haque, Rony Kumar Datta, Rajib Dey & Md. Mostafizur Rahman (2013),” Financial Variables Having Significant Impact on Market Price of Shares” Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.15, 2013
Dr. Ong Tze San & Teh Boon Heng (2011),” Capital Structure and Corporate Performance of Malaysian Construction Sector” International Journal of Humanities and Social Science Vol. 1 No. 2; February 2011
Akma Hidayu Dol & Abdul Wahid (2013,” Measuring the Motivating Factors for Share Buyback: Evidence from Malaysian Companies” ISSN 2277-0844; Volume 2, Issue 2, pp 35-50; February, 2013. Online Journal of Social Sciences Research
Abdol Hossein Talebi Najaf Abadi, Mostafa Zangi Abadi, Narjes Kamali Kermani, Shiva Safarian, Mohammad Kaveh Nobandegani, Roholah Talebi Najaf Abadi, morteza adlzadeh & Farshad mohammad pour (2013),” Impact of New Technology on Market Value Price and Value Relevance of Accounting Information in the Tehran Stock Exchange” J. Basic. Appl. Sci. Res., 3(9)721-728, 2013.
Frankel, R & Lee, C.M.C 1998, Accounting diversity and international valuation, Retrieved from SSRN: http://ssrn.com/abstract=2658.
Holloway, Pedro Rochman, Ricardo Laes & Marco (2013),” Factors Influencing Brazilian Value Investing Portfolios” Journal of Economics, Finance & Administrative Science . Oct2013 Special Issue, Vol. 18, p18-22. 5p.
Vijitha P. and Nimalathasan B (2014),” Value relevance of accounting information and share price: A study of listed manufacturing companies in Sri Lanka” Merit Research Journal of Business and Management Vol. 2(1) pp. 001-006, January, 2014.
Timothy P. Kelley & Judith A. Hora (2008),”The Folly Of Making EPS Comparisons Across Companies: Do Accounting Textbooks Send The Correct Message?” Journal of College Teaching & Learning – February 2008 Volume 5, Number 2.