Abasyn Journal of Social Sciences. Special Issue: AiCTBM 2016

Stock Return Determinants Impact on Organizational Performance

Muhammad Asif, Aqeel Ahmad.

MS (Management) Scholar, Department of Business Administration, Leads Business School,Lahore Leads University, Lahore (Pakistan),
UCP Business School, University of Central Punjab, Lahore (Pakistan).
Lecturer, Department of Business Administration Gomal University, Dera Ismail Khan, KPK,Pakistan.


 



Abstract
There are many variables/factors that have direct collision on stock return and organizational performance. This research work focus to investigate the association/relationship betweenstock return and its determinants relating to nonfinancial organizations (covering the periodof 2010-15) which are listed with the Pakistan Stock Exchange (PSE) formerly known as Karachi Stock Exchange (KSE). In order to work better in today's globalized era of antagonism and secure day to day business operations with maximizations of return, the observance of existing factors is crucial. Hence it is very necessary to know the factors thathave impacts on stock return and performance of the organization. The current study isaccomplished with the aim to observe the impacts of factors/determinants which have impactson return and organizational performance. For this, the determinants are divided into fourgroups i.e. Market Performance of the organizations, Liquidity level of the organizations,Debt Management Systems and Activity level of the nonfinancial organizations by usingsecondary data. In this research a sample of 250 organizations was observed for the purposeof analysis. The outcomes indicates that (Tobin's Q, Sales Growth, ROA, Leverage, QuickRatio, EA, has significant relationship with dependent variable. However, cash ratio, sales tonet fixed assets and sales over total assets has insignificant relationship with dependentvariable. Moreover, supplementary studies may observed external factors/variables i.e. rateof inflations, taxation system of the economy, organizational size, etc as well as due attentionto the services sector of the economy.

Received

Received Revised

Accepted

Available Online


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