Factors affecting share prices: A literature revisit

The aim of the paper is to present key factors they are determinants of share prices in the stock markets globally. To achieve the aim of this study many of previous studies have been reviewed. This paper revisits previous studies by various researches on factors affecting the share price in both developed and developing economies. These researchers looked at the relationships between stock prices and selected internal and external factors affecting a firm’s share price. “Some of the factors affecting share prices can be generalized to both developed and developing economies. Some studies have concluded that company fundamentals such as institutional factors and the nature of the firm or business are major factors that affect stock prices”. “However, other studies indicated that firm’s boundaries, organization, governance, ownership pattern, auditing, and value relevance of accounting information is the most influencing factors of stock prices”. “In addition, the effect of inter related factors has been covered in some other studies”. As a revisit, this work derived from secondary sources. This revisit provides researchers and practitioners with the latest improvements of approaches by minimizing their effort in collecting the relevant material and a better understanding of each factor the affecting share prices, draw attention to specific areas for further research. Based on this result the study of ownership structures, audit quality and value relevance of accounting information and relations between them very important and they key factors to determinants of share prices.