JASF (Journal of Accounting and Strategic Finance)
Vol 2 No 2 (2019): JASF (Journal of Accounting and Strategic Finance)

The Determinant of Equity Share Price and the Listed Deposit Money Banks in Nigeria

Godwin Emmanuel Oyedokun (Department of Accounting, Faculty of Administration, Nasarawa State University, Keffi, Nasarawa State, Nigeria)
Olusegun Adebowale Arotolu (Department of Banking & Finance Faculty of Administration Nasarawa State University, Keffi Nasarawa State, Nigeria)
Harison Vincent (Department of Banking & Finance Faculty of Administration Nasarawa State University, Keffi Nasarawa State, Nigeria)



Article Info

Publish Date
30 Nov 2019

Abstract

In this study, the researcher examined the financial variables influencing the share price of listed deposit money banks in Nigeria. An ex-post facto research design was employed with the population consisting of all fifteen (15) listed deposit money banks on the Nigeria Stock Exchange (NSE), and a sample of twelve (12) listed deposit money banks on NSE was taken using filter criteria and judgemental sampling techniques. Secondary data used were sourced from the annual reports of the sampled banks and GTI Securities Ltd. for five years period from 2013-2017. Ordinary Least Square (OLS) was used to analyze the data. The results of the multiple regression revealed that the dividend payout ratio and price-earnings ratio have a significant positive relationship with the share price. The results also showed that dividend yield has a significant negative association with share price; the book value per share has no meaningful relationship with the share price. This study recommends that the shareholders in the deposit money banks should be guided by industry financial ratios, especially the profitability measures of price-earnings ratio and dividend payout ratio, as they are critical factors in predicting share price behavior.

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Journal Info

Abbrev

jasf

Publisher

Subject

Economics, Econometrics & Finance Education Environmental Science Social Sciences Other

Description

Journal of Accounting and Strategic Finance (JASF) is a blind peer-reviewed journal that publishes theoretical, empirical, and experimental research papers. The Journal encourages the utilization of economic, financial and sociological theories to investigate, analyze, and explain issues in ...