Determinant of Price Earning Multiple in Sir Lankan Listed Companies


This study involves a determinant of the price earning multiple of listed companies in Sri Lanka. The sample of the study is composed of 30 companies listed on the Colombo Stock Exchange from 2007-2011. The results reported in the empirical study for sample companies show that the ROE has a negative impact on P/E multiple and the dividend payout has a positive impact on P/E multiple amongst listed companies in Sri Lanka.Hence it is not advisable to use the market capitalization variable to determinant the P/E multiple in Sri Lanka.

Keywords: Market Capitalization, Payout Ratio, Price earning multiple

Article Review Status: Published

Pages: 44-56 (Download PDF)

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License

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