文章基本信息

标题：Determinants of Price-Earnings Ratio: The Case of Chemical Sector of Pakistan
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作者：Dr Talat Afza ; Ms. Samya Tahir
期刊名称：International Journal of Academic Research in Business and Social Sciences
电子版ISSN：2222-6990
出版年度：2012
卷号：2
期号：8
页码：331-343
出版社：Human Resource Management Academic Research Society
摘要：Price-to-Earnings (P/E) ratio, a relative valuation technique has always remained at the centre of attention of market analysts and investors ever since the origin of discounted dividend growth model of Gordon and Shapiro (1956). The present study attempts to identify the factors explaining variations in P/E ratio for chemical sector of Pakistan by using Ordinary Least Square (OLS) regression on pooled data of 25 firms listed at Karachi stock exchange for the period 2005 to 2009. Furthermore, taking into account the volatility in Pakistani stock market during the study period, a time-series analysis has also made by using OLS regression model to examine whether determinants of P/E ratio differ across years or not. Results demonstrate that Dividend payout ratio and Tobin's Q remain the most important determinants of P/E ratios for pooled as well as time-series analysis. The study is expected to facilitate decision makers to evaluate factors that explain variations in firm's P/E ratio in order to attract investor's attention and raise their confidence to select these firms in their portfolios.
关键词：price-earnings ratio (P/E ratio); Karachi Stock Exchange; market ;volatility; chemical sector; Pakistan