Profit after tax (PAT) Adesola & Okwong (2009), Ahmed Javid (2009) and Al-Kuwari (2009) used profit after tax as independent variable in their studies and found positive relation between stock prices and profit after tax. They considered profit after tax as an important variable to explain the variation in stock prices. Thus, this study develops the following hypothesis: H6: Profit after tax is positively related to market price per share. Liquidity (LID) According to Graham (2010), liquidity is defined as how cash, cash equivalents and other assets can be easily converted into cash. Liquidity ratio is able to calculate the firm's ability to pay off its short term debt obligations. Here, cash reserve ratio is referred as liquidity. The study of Hafeez and Attiya (2008), Ahmed and Javad (2009) and Mehta (2012) asserts that firms with more liquidity are likely to pay dividends and increase the stock market price. Based on it, this study develops the following hypothesis: H7: Liquidity is positively related to market price per share. Leverage (LEV)leverage is measured as debt to equity ratio. Profilet and Bacon (2013) found negative relation of stock price volatility with leverage. Based on it, this study develops the following hypothesis: H8: Leverage is negatively related to share price volatility.Growth (G)The study of Asghar, Shah, Hamid & Suleman (2011) and Profilet and Bacon (2013) found that growth of assets has a negative relation with share price volatility. Here, growth is measured based on asset ratio. Based on it, this study develops the following hypothesis: H9: Growth of total assets is negatively related to share price volatility. Size (SZ)Size is one of the control variable measured by using the natural logarithm of total assets. Hussainey et al. (2011) and Habib, Kiani and Khan (2012) found inverse association between size and share price volatility. Based on it, this study develops the following hypothesis: H10: Size of total assets is negatively related to share price volatility.
63. The results Descriptive statistics Table 2 shows the descriptive statistics. Clearly, market price per share ranges from zero to Rs. 6830, leading the average market price per share to Rs. 961.22 while the share price volatility ranges from zero to 4 times, leading the average share price volatility of 0.92 times. Table 2: Descriptive statistics This table provides descriptive statistics for dependent variables market price per share and share price volatility. The independent variables are earning per share, retained ratio, return on equity, profit after tax, liquidity, dividend payout ratio, dividend yield ratio, leverage, growth and size. N is the number of observations. N Minimum Maximum Mean SD Market price per share 102 0.00 6830.00 961.22 1210.41 Share price volatility 102 0.00 4.00 0.92 1.06 Earnings per share 102 0.00 131.92 40.19 31.33 Retained ratio 102 -103.38 100.00 43.35 45.03 Return on equity 102 -27.00 194.00 20.58 22.22 Profit after tax 102 -138157 2365482 624044 552612.54 Liquidity 102 1.91 36.65 11.28 6.33 Dividend payout ratio 102 0.00 203.38 56.64 45.03 Dividend yield ratio 102 0.00 14.90 2.56 2.41 Leverage 102 0.22 1.17 0.87 0.10 Growth 102 -0.17 1.11 0.22 0.21 Size 102 6.79 7.91 7.42 0.27 Valid N (listwise) 102 The earnings per share varies from zero to Rs. 131.92, leading to the average of Rs. 40.19.