Factors Influencing the Individual Investor and Stock Price Variation: Evidence from Karachi Stock Exchange

Azam, Muhammad; Kumar, Duresh
December 2011
Australian Journal of Basic & Applied Sciences;2011, Vol. 5 Issue 12, p3040
Academic Journal
The purpose of this study is to analyze the individual investor behavior and stock price variation in the Karachi stock exchange (KSE), Pakistan. The present study focuses only those variables which are identified by ordinary investors through a survey namely; earning per share, dividend yield, foreign direct investment, and gross domestic product growth rate. A sample of 35 dividend paying firms has been selected for the period of 2001 to 2008. Multiple regression analysis has been applied to predict the relationship between influencing variables and stock prices. The obtained results show that the influencing variables have a significant impact on KSE.


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