The Impact of Share Pricing on Firm Performance: Empirical Evidence from Pakistan

Researchers examined the impact of share pricing on firms performance in Pakistan. Selected 98 firms from five different sectors listed on Karachi Stock exchange1 . Selected sample on the bases of availability of complete data of sample firms during period of this study (2006-2011). Data used are secondary in nature and source of data is balance sheet analysis of listed firms. Used Net profit margin as depended variable while earnings per share used as independent variable and return on assets overhe1 ads and earnings before interest and tax used as control variables. For analysis used Panel data techniques as fixed and random effect models. On the basis of Hauseman effect test select fixed effect model for analysis and concluded that the impact of earnings per share, earnings before interest tax and overheads are significant on net profit margin. However, impact of return on assets on net profit margin is insignificant.