The effect of micro factor on stock price : special reference to manufacturing sector

Abstract

This research examines the "Effect of Micro Factors on the Stock prices; SpecialReference to the Manufacturing Sector in the Colombo Stock Exchange (CSE),,.The mainintent is to identiS the effect of selected micro variables on the stock prices of selectedmanufacturing companies listed in CSE. For the study the researcher used the secondarydata which were collected from selected companies 5 years' Annual reports. The sampleof 15 companies was selected for this study based on the criteria developed by theresearcher listed in the cJombo Stock Exchange, representing manufacturing sector. Inthis study, Return on Equity, Price Earnings Ratio, Dividend per Share and FinancialLeverage are independent variables, which is represented by as the Stock pricesdependent variable. The data have been analyzed, by using descriptive, correlation andregression analysis to find out the effect of the micro variables on the stock prices.According to the results of the overall analysis, there is significant effect dividend pershare on the stock prices. And also found that there is an insignificant effect return onequity, earnings per share, price earnings ratio on the stock prices.