Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Exchange using KSE-30 companies. This is believed to be the first study which considers the aforementioned issues in the Pakistan’s capital market environment.

The classic model of sustainable growth presented by Higgins is extensively used in accounting and finance research. This research empirically examines this model which was suggested to be underestimated in the existing literature. The investigation was performed using data from 2000 to 2015 for seven emerging countries. To find out the mean difference in growth between secondary equity issuing firms and non-issuing firms, we used an independent sample t-test. To identify the factors affecting differences in sustainable growth and realized growth,  regression analysis was performed and a panel of seven countries for sixteen years data was used to estimate the panel regression. The study found the Higgins’ model to be underestimated. One of the main factors of underestimation of the model was found to be the secondary equity issue. This factor was observed to be significant in the case of five countries i.e. Pakistan, India, Korea, Indonesia and Brazil while the same was found insignificant in Turkey and China. Also during the examination, firm-specific factors that are important for the underestimation of the SGR (Sustainable Growth Rate) model were detected which include leverage and size, whereas dividend policy and profitability gave mixed results. Our study suggests that firms with secondary equity issues are more likely to have sustainable growth than firms not having secondary equity issues.

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The evident volatile position of Pakistan Stock Exchange shows need for reforms in order to depict better performance in future. However, the external factors are not always sufficient for a better change, the internal performance of organization is also crucially important. This study aims at studying the internal performance of top management i.e., a CEO in an organization by introducing the factor of innovation with the proxy of patent applications. Considering the panel data, the sample consists of companies of varied sectors listed in Pakistan Stock Exchange for three years (2015-2017) time period. The structuring of models and framework for the study in done on the basis of literature available. The data for the study being quantitative in nature is collected from financial statements and different websites. Furthermore, the data is analyzed using multiple statistical tools such as correlation and regression. The limited availability and accessibility to data in Pakistan showed insignificant results nevertheless there is a large scope for future research in this topic.

In recent decades, the worldwide consecutive catastrophes in the financial markets emphasize the accelerating prominence of investors’ sentiment on the financial market. Therefore, within academia, a shift from conventional finance to behavioral finance can be noticed and the most eminent topic of interest is the exploration of herding behavior. Inspired by the ongoing altercation on the magnitude and presence of herding in the stock markets, the present study aspires to explore the Pakistan stock market concerning herding behaviour. Investors’ industry-wise market-based herding behavior in the Pakistan stock market has been examined by employing daily data obtained from Bloomberg starting from January 2000 to April 2016. Cross-sectional variabilities in the factor sensitivities (Beta) have been employed to estimate investors' sentimental herding behavior, following the model of Hwang and Salmon (2004). The study found herding to be significant and persistent, independent from market fundamentals, like levels of market returns and volatility of returns. Findings also show that investors do herd considering the industrial classification of financial assets; hence it leads to mispricing of stocks. The study also presents industry differences in herding. Sugar and banking sectors are found to be more prone to herding while textile and manufacturing sectors are found less prone to herding. The results entail cogent implications for the investors pursuing diversification in the Pakistan stock market.