Determinants of Equity Share Price Movement: Evidence From the Nigerian Banking Industry (2000 – 2014)

Abstract

Profit maximization is the primary focus of investors. The banking industry is a veritable sector for investment, however, understanding the determinants of profitability is paramount as it assists investors to know where their money should go. This study, therefore, investigates the influence that Earnings per share (EPS) and Non-Financial factors namely: inflation, exchange rate, and interest rate have on share price movement. The Ex-post factor was adopted as the research design. The data on EPS was collected from the Central Bank of Nigeria (CBN), Factbook, and the financial reports of the selected banks. The data on the Interest rate, Inflation, and Exchange Rate were collected from the Bulletin of CBN. The time-series data were diagnosed using the Unit root test; they were detrended where necessary to avoid a spurious result. The data were then analyzed using multiple regression. Also, Variance inflation factors (VIF) were engaged to test for the multicollinearity of the selected variables; while a heteroskedasticity test was carried out for a result free of heteroskedasticity. The outcome from the analysis displayed a positive but insignificant relationship between EPS and the market price of shares (MPS;); The study also revealed a negative and significant relationship between Inflation share price; while Interest Rate is insignificantly and negatively influencing the share price. Finally, Exchange Rate showed a significant influence on the share price. The researcher, therefore, recommends among others the need for Nigerian listed Banks to endeavor to improve on their EPS as this will increase their share price even though it won't be significant. Inflation displayed a negative and significant effect on the share prices of the quoted Banks in Nigeria; policies that will reverse the geometric rise in the inflation presently experienced in Nigeria should be enacted by the Government.

Chief Executive Officer (Ceo) Attributes and Tax Avoidance Insight From Listed Non-Financial Firms in Nigeria

“…However, achieving the firm's wealth maximization goal via various ways of boosting profitability places a greater strain on the firm's capacity to lower its tax obligation. According to Chucks, Felix, and Temile (2021), the majority of Nigerian enterprises are heavily funded via equity, making them ineligible for tax incentives related to CEO qualities. Based on the findings of this research, it is possible to infer that CEO qualities such as CEO tenure and CEO gender are important.…”

Firm Specific Drivers of Corporate Social Responsibility (Csr) Disclosure Among Oil and Multinationals in Nigeria

“…Additionally, it involves disclosing information, firms' operations concerning the reporting entity's resources and social performance. Additionally, Tilt (1994), which Chucks, Felix, and Temile (2021); Gololo (2019) cites as endorsing, contends that CSRD entails a firm's deliberate choice to inform stakeholders about its corporate actions. It is a technique by which management can engage with the larger society to affect how people see their organization, according to Gololo (2019).…”

“…Meeting the expectations of the firms' stakeholders about CSR participation may be for other reasons. According to Abdu (2016) and Chucks, Felix, and Temile (2021), this study gauges firm size based on total assets. Because companies that perform well economically are may pay dividends more, and because companies that pay dividends have greater incentives to engage in CSR because it will bode well for the company, scholars contend that, there is a correlation between DPS and CSR.…”