Abstract:
The study efforts to examine the influence of few selected financial factors on the share price of
Material sector listed firms in Colombo Stock Exchange (CSE) for the period from 2015 to 2019.
Fifteen listed companies have selected as sample of the study and the quantitative approach was
selected as the research approach of the study. Secondary data was collected from the annual
reports of listed companies and data was analyzed by using descriptive analysis, correlation and
four regression models. The results of the study shows that there is an insignificant and negative
relationship between ROA (Return on Asset) and share price and at the same time there is a
significant positive relationship between gross profit ratio and share price. Furthermore, debt to
equity ratio has a significant and negative relationship with the share price. Therefore financial
decision makers and stock holders in their financing in order to make decisions about investment
should consider only ROA (Return on Asset) instead of gross profit ratio and debt to equity
ratio.
