FIRM CHARACTERISTICS AND STOCK PRICES OF QUOTED NON-FINANCIAL FIRMS IN NIGERIA

ABSTRACT The study examined the firm characteristics and stock prices of quoted non-financial firms in Nigeria. The study used an ex-post facto research design. The population comprises all the 107 listed non-financial firms in Nigeria and a filtering sampling technique was used to arrive at forty-eight (48) sampled firms covering the periods of 2012 to 2022. The hypotheses were tested using Random effect regression model after conducting some diagnostics tests like Pearson correlation, Variance Inflator Factor, Heteroscedasticity, Breusch-Pagan Lagrangian Multiplier and Hausman Specification. The results show that firm growth (FG) and firm size (FS) have significant positive effects on market price of shares (MPS) of quoted non-financial firms in Nigeria for the period under review. However, the results also show that firm size (FS) and firm age (FA) have insignificant positive effects on market price of shares (MPS) of quoted non-financial firms in Nigeria for the period under review. The study recommends among others, that the management of non-financial firms in Nigeria should put the growth level of their firms into consideration by ensuring a consistent increase in the value of their revenues yearly to attract more investments from the equity investors in the capital market. Their five-year growth rate should also be provided to all the stakeholders in their financial statements. Also, the non-financial firms should consolidate their firms to form a large capital base that would make them take advantage of large-scale production to attract more equity investors to their firms in Nigeria.

0 19 May, 2026

pg: 12

LADIRC OPEN JOURNAL SYSTEM

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