FINANCIAL REPORTING AND MARKET SHARE PRICES OF QUOTED FINANCIAL FIRMS IN NIGERIA

ABSTRACT The diminished confidence in accounting information due to the prevalence of fraud and financial crimes in Nigeria has had a notable impact on investors' trust in financial reports. This skepticism has led to concerns about the adequacy of disclosure in annual reports and the perceived gap between user information needs and the actual content provided. Based on this, the study, therefore, investigate the financial reporting and market share prices of quoted financial firms in Nigeria, covering, 2012 to 2022. The population consists all the quoted financial firms in Nigeria while filtering criteria was used to arrive at a sample size of forty-three (43) financial firms in Nigeria. The hypotheses were tested using robust random effect regression model after conducting some diagnostics tests like Shapiro Wilk Normality, Pearson Correlation, Variance Inflator Factor, Heteroscedasticity, Breusch-Pagan Lagrangian Multiplier and Hausman specification test. The results show that return on capital employed and dividend payout ratio have insignificant positive effects on share prices of financial firms in Nigeria. The results also show that earning per share has a significant positive effect on share prices of financial firms in Nigeria. The study recommends among others, The financial firms in Nigeria should consistently increase their earnings per share by adopting effective cost control strategies in their operations to increase earnings per share and attract more equity investments in their firms. This will encourage the existing shareholders to maintain their investment and to increase investment also this would attract other potential shareholders to invest in the company. The management of financial firms in Nigeria should also pay large percentage of their dividend of at least 60% to the shareholders to increase investors’ interest and attract investments from equity investors.

0 19 May, 2026

pg: 14

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