Stock price in an efficient market provides investors with a good measure of any firm’s performance and its value. The corporate owners and prospective investors need a proper understanding of main variables that influence the firm’s stock market price in order to make better informed decisions. This study reviews the factors that determine the firms’ equity share price with special focus on the microeconomic factors. Dividend per share, earning per share, book value per share, dividend payout, price earnings ratio, and size of the firm have been identified as significant factors impacting the firm’s equity share price by the corporate finance scholars.

Stock price in an efficient market provides investors with a good measure of any firm’s performance and its value. The corporate owners and prospective investors need a proper understanding of main variables that influence the firm’s stock market price in order to make better informed decisions. ...