• Corpus ID: 11797738

The Relationship between Stock Price and EPS: Evidence Based on Taiwan Panel Data

  title={The Relationship between Stock Price and EPS: Evidence Based on Taiwan Panel Data},
  author={Chi-Wei Su and Yanhao Chang and Yahn-Shir Chen and Hsuling Chang},
  journal={Economics Bulletin},
In this study, we use panel cointegration methods to investigate the relationship between stock prices and earnings-per-share (EPS). Furthermore, we consider whether stock prices respond to EPS under the different level of growth rate of operating revenue. The empirical result indicated that the cointegration relationship existed between stock prices and EPS in the long-run. Furthermore, we found that for the firm with a high level of growth rate, EPS has less power in explaining the stock… 

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