FIRM PERFORMANCE INDICATORS AND MARKET SHARE PRICE OF QUOTED FINANCIAL FIRMS IN NIGERIA

ABSTRACT There has been a systemic decline in the usefulness of financial information to investors over the years, as manifested by a weakening association between capital market value and financial attributes. This paper, therefore, considers the firm's performance indicators and market share prices of quoted financial firms in Nigeria. The population comprises all the 49 financial firms quoted on the Nigerian Exchange Group as of December 31, 2022, and filtering criteria were used to arrive at forty-one (41) sampled firms covering the periods of 2012 to 2022. Descriptive Statistics, Shapiro-Wilk Normality Test, Pearson Correlation, Variance Inflator Factor, Heteroscedasticity test, Breusch-Pagan Lagrangian Multiplier test, Hausman specification test, and Robust Random Effect Model were used in analyzing the data. The study discovered that return on equity exerts a significant positive impact on the market share prices of quoted financial firms in Nigeria. However, return on assets and dividend per share were found to have insignificant positive impacts on market share prices (MSP) of quoted financial firms in Nigeria. The study thereby recommends, among others, that the management of a financial firm in Nigeria should strive to ensure high returns on equity to make more equity investments attractive, by increasing net income, reducing costs, enhancing revenue, and making strategic investments in projects with high returns. Also, ensuring strong returns on assets by the management will attract more equity investments in Nigeria. This can be done by regular review and optimization of operational processes to reduce waste and enhance efficiency.

0 19 May, 2026

pg: 12

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