Determinants of Share Prices of Agriculture Listed Firms

International Journal of Economics and Financial Issues Pub Date : 2024-07-03 DOI:10.32479/ijefi.16062

S. Abel, Muleya Henry, Tebogo Mokumako, Julius Mukarati, Pierre Le Roux

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Abstract

The stock market plays an important role in economic development by promoting capital formation and enhancing economic growth. The stock market is among the main sources of financing in the critical sector of the economy. Trading of securities on the Zimbabwe stock exchange facilitates savers and users of capital by fund pooling, risk sharing and transferring wealth. One of the important sectors of the Zimbabwean economy devoid of adequate financing is the agricultural sector. This sector has been experiencing several challenges over the period 2002 -2022 mostly from lack of sustainable finance especially from private investment. It is assumed that lack of funding is due to volatility of stock prices. The objective of the study is to analyze different factors affecting share price of agriculture sector listed firm on the Zimbabwe Stock Exchange using the panel regression model. Based on the random effect the study established that share prices are determined by earnings per share, price earnings ratio and return on equity positively impacts stock prices in Zimbabwe. The government should control inflation to ensure price stability to aid in easy financial planning. Further the governments should promote agricultural growth initiatives and strategies which would stimulate demand for agricultural oriented stocks.

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农业上市公司股价的决定因素

股票市场通过促进资本形成和加强经济增长，在经济发展中发挥着重要作用。股票市场是重要经济部门的主要融资来源之一。津巴布韦证券交易所的证券交易通过资金汇集、风险分担和财富转移，为资本的储蓄者和使用者提供了便利。津巴布韦经济中缺乏充足资金的重要部门之一是农业部门。2002 年至 2022 年期间，该部门一直面临着一些挑战，主要是由于缺乏可持续的资金，特别是来自私人投资的资金。据推测，缺乏资金的原因是股票价格的波动。本研究的目的是利用面板回归模型分析影响津巴布韦证券交易所农业板块上市公司股价的不同因素。基于随机效应，研究确定股价由每股收益决定，市盈率和股本回报率对津巴布韦的股价有积极影响。政府应控制通货膨胀，确保价格稳定，以帮助制定简单的财务规划。此外，政府应促进农业增长倡议和战略，从而刺激对农业股票的需求。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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International Journal of Economics and Financial Issues

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期刊介绍： International Journal of Economics and Financial Issues (IJEFI) is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of economics, finance and related disciplines. The journal has a worldwide audience. The journal''s goal is to stimulate the development of economics, finance and related disciplines theory worldwide by publishing interesting articles in a highly readable format. The journal is published Bimonthly (6 issues per year) and covers a wide variety of topics including (but not limited to): Macroeconomcis International Economics Econometrics Business Economics Growth and Development Regional Economics Tourism Economics International Trade Finance International Finance Macroeconomic Aspects of Finance General Financial Markets Financial Institutions Behavioral Finance Public Finance Asset Pricing Financial Management Options and Futures Taxation, Subsidies and Revenue Corporate Finance and Governance Money and Banking Markets and Institutions of Emerging Markets Public Economics and Public Policy Financial Economics Applied Financial Econometrics Financial Risk Analysis Risk Management Portfolio Management Financial Econometrics.