“A STUDY ON RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND SCRIPT PRICES OF SELECTED TECHNOLOGY COMPANIES LISTED ON NIFTY DURING 2005-2015”

Abstract

This paper is dealing with finding an appropriate regression model which depicts the relation between scrip prices and financial statements. With the development of Indian stock market, the function and impact of listed companies had a significant role in the stock market scrip price movement, especially the accounting information of the companies has an vital effect on the quoted companies’ stock price and investors’ behaviour in the market. The research of this paper empirically analyses the relationship between accounting information and scrip price movement with a few accounting information such as profitability, efficiency, liquidity and solvency. The results, based on three listed technological Companies having the highest weightage in NSE during 2005-2015. Conclusion derived from the empirical research was (1) There is a positive relation between accounting information and stock price, but the degree of significance varies; (2) Profitability element had the most significant correlation. Results from research on these topics is might be helpful in Scrip price movement mechanisms, determining accounting standard and corporate financial disclosure decisions.