Abstract:
The purpose of this research is to investigate the relation between corporate
Performance and stock returns of those firms. In accordance with this purpose to
Evaluate the statistically significant relationships between firm performance and stock
top ten listed firms in Colombo Stock Exchange for the period of 2007 to
2011 has been analyzed under multiple regression method by using SPSS. The work
Includes the clear evidences to support the relation between and corporate
performance which is taken as an independent variable and stock return which is
teken as dependent variable while seven financial performance measures have been
taken as variables to measure the corporate performance. The study finds insignificant
relation between corporate performance and stock returns. However, only NPM has
some explanatory power to the stock price movements and other variable have not.
