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Stock Price Case Study

5382 Words22 Pages

CHAPTER 1
INTRODUCTION

This study is to examine the factors that can influence companies stock price. This chapter will discuss briefly on the background of the study, problem statements, research questions,research objectives, significance of study and also provide a summary of chapter 1.
In the background of study, this research will discuss more about the dependent and independent variables. The dependent variable in this research is the companies stock price while for the independent variables are Dividend Yield (DY), Dividend payout Ratio (DPR), Earning per Share (EPS) and Return on Equity (ROE). It is presumed that the selected independent variables have a significant influenced on the companies stock price. This relationship is the …show more content…

The common stock’s volatility is a benchmark for measuring risk. It indicates the changing pace in the stock’s price over a determined period; the more considerable volatility implies that the possibility of gain or loss is higher in short-term. So the price of volatile stock would differ considerably over time and it is very difficult to predict the future price of this stock. Investors usually choose less risky investment and less risky investments are better than those with higher risk (Kinder, …show more content…

Specific Research Question What is the relationship between Dividend Yield and company Stock Prices?

What is the relationship between Dividend Payout Ratio and company Stock Prices?

What is the relationship between Earning per Share and company Stock Prices?

What is the relationship between Return on Equity and company Stock Prices?

Research Objective
The research objectives have been developed based on the research questions above and are divided into two categories. Research questions and research objectives must be in line in order to get the final result of this research.

1.4.1 Main Research Objective
To investigate whether there is a relationship between selected independent variables and company stock prices.

Specific Research Objective To investigate whether there is a relationship between Dividend Yield and company stock prices. To investigate whether there is a relationship between Dividend Payout Ratio and company stock prices. To investigate whether there is a relationship between Earning Per Share and company stock prices. To investigate whether there is a relationship between Return On Earning and company stock prices.

Significant Contribution of the

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