• Avlon D’Silva
• Deepak Acharya
• Shivangi J Shah
• Johns D

In this research paper the CAPM model is used to find out the expected return from the equity shares based on the financial factors of the company. This expected return is then compared with the actual returns of the investor to establish the abnormal returns. The deviations are analysed using the Paired Samples T-Test to come to a conclusion whether the annual financial statements release have an impact on the stock prices of the companies. In addition to the impact of the annual financial statement update, this research paper also studies whether the equity share prices reflect the Basic EPS of the company by using the Shiller’s P/E 10 Ratio or the Cyclically Adjusted Price Earnings ratio over the study period of 5 years.

Shiller’s P/E 10 Ratio, Cyclically Adjusted Price Earnings Ratio, CAPM, Abnormal Returns, Financial impact on stock prices, Annual Financial Statements, Pharmaceutical industry.

"The Impact of the Annual Financial Statements on the Equity Share Prices and the Application of the Shiller’s P/E 10 Ratio ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 11, page no.55-65, November-2018, Available :http://www.jetir.org/papers/JETIRM006006.pdf

"The Impact of the Annual Financial Statements on the Equity Share Prices and the Application of the Shiller’s P/E 10 Ratio ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 11, page no. pp55-65, November-2018, Available at : http://www.jetir.org/papers/JETIRM006006.pdf