Does earning per share determines the market price of ordinary shares

Present study has been conducted to identify the impact of earning per share on market price of ordinary shares. An attempt has been made to identify the factors that are responsible to make changes in shares price. The study used the data of public sector banks listed in KSE for the year 2006 to 2014. Unit root test analysis was applied to see the individual and combined impact of earning per share on market price of ordinary shares. The empirical findings showed that there is a positive significant relationship between earning per share and market price of ordinary shares.