AN EMPIRICAL DETERMINANT OF EQUITY SHARE PRICE OF SOME QUOTED COMPANIES ON THE NIGERIAN STOCK EXCHANGE
Abstract
The study analyzed the major variables that determine the equity share price of listed
companies on the Nigerian Stock Exchange [NSE] publication as at 2011/2012 edition.
Eighty companies were examined. The quoted price of the shares on 4th January 2011 was
estimated by other explanatoryvariables.OLS regression was used to analyse cross-sectional
[non– time series] data. Findings revealed that the previous year share price significantly and
positively influenced equity share price at α=0.000 and earnings per share was negatively
significant at α=0.05. The last was dividend per share, positively and significantly influenced
equity share price at α=0.014. The combined three variables explained the variation in equity
share at an adjusted R – square value of 0.969. This showed that about 97 percent of the
determinants of equity share price had been explained by these three explanatory variables.
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References
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Adesola, W.A and Okwong A.E [2009] “An Empirical Study of Dividend Policy of Quoted
Companies in Nigeria” Global Journal of Social Sciences 8 [1], 85 – 101
Adelegan O.J. [2003] An Empirical Analysis of the Relationship Between Cash flow and
Dividend Charges in Nigeria.African Development Review 15 [1], 35 – 49
Adesola, W.A and Okwong A.E [2009] “An Empirical Study of Dividend Policy of Quoted
Companies in Nigeria” Global Journal of Social Sciences 8 [1], 85 – 101
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