Abstract:
The purpose of this research is to provide empirical evidence concerning
value relevance of accounting information such as Earning per Share (EPS),
Net Assets Value Per Share (NAVPS), and Return On Equity (ROE) and Price
Earnings Ratio (P/R) to Share Prices (SP) of manufacturing companies in
Colombo Stock Exchange (CSE). Quantitative approaches were used in this
study. For conducting this research, data were collected from secondary
sources mainly from financial report of the selected companies, which were
published by CSE in Sri Lanka. Findings of this research revealed that the
value relevance of accounting information has the significant impact on
share price and value relevance of accounting information is significantly
correlated with share price.
