Beta explains the contribution of independent variable Earning Value of per Share EPS with beta coefficient of 4.261 and sig. value of .000 makes the strong contribution in explaining the Market Value of Shares. The independent variable shows impact on dependent variable Market Value of Shares MVS significantly. The statistical tests applied in this case, also suggest there is a strong relationship between independent variables and dependent variable.
Table 8. Correlation
Correlation MVS Average EPS Average Pearson Correlation .939** Sig. (2-tailed) .000
**. Correlation is significant at the 0.01 level (2-tailed).
Result declaring significant correlation=.939 because value is falling between -1 to +1.
The regression analysis shows that there is a significant impact of independent variable on dependent variable Market Value of Shares MVS. Also the correlation analysis shows that the correlations between variable is as follows, the variable has correlation significant at 0.01 levels with each other. The results of correlation and regression analysis support all hypotheses i.e., the factors have a significant and positive relation with dependent variable Market Values of Shares MVS in Pakistan.
6. Conclusions
There are different factors affecting the market value of a share. Among them one of the important factor taken in the study is Earnings per share Therefore, the present study examines impact and the relationship between MVS & EPS. The regression and correlation models for EPS exposed basic related variable that influencing the MVS of that industry. The graphical representation also shows that MVS increase with the increase of EPS and vice versa. The study is based on the data of 13 cement companies of Pakistan. According to data analysis results we can conclude that EPS impacts the market value of share and have a positive and significance relationship between EPS and MVS in Pakistan cement industries. So our all the hypothesis H1 and H2 are proved. Hence investors can form better verdict and make intellectual and rational investment verdicts based on these variables while making investments in cement industry of Pakistan.