Abstract:
The objective of this study research is to empirically investigate the effects of political instability, world economic crisis, inflation, exchange rate, high interest rate, dividend payment, company good will on the share prices of companies listed in Pakistan stock exchange. The researcher tests the results and conclude that H1, H2, H3, H6 and H7 is accepted whereas H4 and H5 is rejected after the analysis of data. The results proved that political instability, global crisis and inflation have negative impact on share prices of companies whereas good will and dividend payment have positive impact on the share prices of companies. It is recommended that Government should control political instability, inflation and take corrective measure to safe the economy by the effect of global crisis as these factors have very negative impact on share prices of the companies so it is necessary to control these factors for the growth of the economy. It is also recommended that companies should focus on the goodwill and dividend policy of the company , as it is proved that the goodwill also affect the demand and share prices of companies because most of the investor prefer to invest in highly well reputed companies and dividend payment also have positive impact on share prices.
