مجلة الامتياز لبحــوث الاقتصاد والادارة
Volume 5, Numéro 1, Pages 337-349
2021-06-03

The Relationship Between A Stock Price, Its Earning Per Share, And Its Dividend Per Share: Evidence From The Saudi Stock Exchange 2015-2018

Authors : Elsheikh Babikir . Allaoui Abdelfattah . Al Sharmah Saleh .

Abstract

Abstract: This paper intends to inspect the extent to which stock price [SP] is influenced by the volatility of earning per share [EPS] and dividends per share [DPS] of Saudi Stock Exchange listed companies [Tadawul], during 2015 – 2018. Multiple regression models were built to identify the influential role of [EPS] and [DPS] on [SP]. The outcome of the built models mirrors a significantly influential role of the two factors earning per share and dividend per share on the stock price during the period under consideration. Also, the models reveal that during the overall period under study earning per share has a dominant influence on stock price, contrary to the dividend per share which was dominant for only two years, suggesting investors’ tendency toward using earning per share as a predictor, rather than dividend per share when deciding on their options for investing in Tadawul listed companies stocks.

Keywords

Key Words: earning per share, dividend per share, stock price, Tadawul, Saudi Stock Exchange