Open AccessDETERMINATION OF SHARE PRICE OF AGRO ALLIED FIRMS: EVIDENCE FROM NIGERIA
Author(s) -
Adedoyin Isola Lawal,
Ezeikel Oseni,
Abiola John Asaleye,
Bukola Lawal-Adedoyin,
Crystal O. Elleke
Publication year - 2020
Publication title -
humanities and social sciences reviews
Language(s) - English
Resource type - Journals
ISSN - 2395-6518
DOI - 10.18510/hssr.2020.8450
Subject(s) - share price , earnings per share , earnings , dividend , stock exchange , market share , book value , price–earnings ratio , business , value (mathematics) , economics , monetary economics , financial economics , accounting , finance , machine learning , computer science
Purpose: The study aims to investigate the determinant of the share price of agro-related firms listed on the Nigerian stock exchange.
Methodology: We employed regression analysis, unit root test as well as vector correction model to determine the degree of relationship between share prices and each of return on assets (ROA), earnings per share (EPS), dividend per share (DPS).
Findings: The study found that share price is majorly influenced by earnings per shares, while other variables lag it.
Practical implications: Results from the study have some possible policy implications, for instance, it is recommended that policymakers should put in place conducive market environments that will stimulate earnings from investments. Investors should on the other hand pay keen attention to information within and outside the economy when making investment decisions.
Originality/Value: This study is one of the first studies on determinants of share prices with a focus on agro-allied firms.