An Empirical Investigation of the Interaction Between Earnings Per Share and Stock Price: Implications for Investment Decisions
摘要
This critical study analyzes the relationship between Earnings per Share (EPS) and Stock Price (MP) in the Indian stock market. Investors and academics are keen to understand whether EPS positively or negatively impact MP. This interest arises from the desire to mitigate risk and enhance investment returns. It is widely recognized that companies with strong financial performance are more likely to offer higher returns on investment. To examine this relationship, regression analysis and correlation tests, ANOVA were conducted. The study sample comprised 10 private companies listed under NSE 50 since inception—last five years EPS and MP of selected companies’ data collected from secondary sources. The results indicate a significant relationship between EPS and MP.