This paper investigates the determinants of market price of share of Indian companies. The investigation was conducted using a econometric methodology to examine the existence of relationship with companies performance and revealed that market price of share to some extent determined by companies dividend decision and size of the companies like micro economic factors including interest rates, inflation, money supply and exchange rates. Although no significant relationship found in between companies’ profitability and market price of share; growth and market price of share and liquidity and market price of share. The results suggest that with the increase of size of the companies and distributing dividend among the shareholders the market price of the shares also increases and vice-versa.
Market price of share, Dividend decision, Size of Companies
