Market Fundamentals and Stock Pricing in Nigeria

2015 ◽  
pp. 91-108
Author(s):  
Chukwuma Agu ◽  
Anthony Orji
Keyword(s):  
Secondary Data ◽  
Relative Price ◽  
Share Price ◽  
Share Prices ◽  
Macroeconomic Indicators ◽  
Market Fundamentals ◽  
External Sector ◽  
Key Indicators ◽  
The Relationship ◽  
Fundamental Values

This chapter investigates the relationship between stock pricing and behaviour of the stock market on one hand and micro and macroeconomic fundamentals in the Nigerian economy on the other from 1980-2009 using both primary and secondary data. Results from the primary survey indicate that the key drivers of share prices were neither broad macroeconomic indicators nor key indicators of the health of the firm. Prices were clearly shown to be much above levels that could have been determined by such indicators as posted profits of firms, amounts paid out as dividend and its regularity. Secondary data analysis equally show that the relationship between actual levels of the all share price index for the period of our analysis and during the financial crisis were not driven by “expected” variables. While its fundamental values are driven by monetary and relative price variables, actual values are driven by external sector variables and prices.

scholarly journals Capital Structure and Stock Prices: Empirical Evidence from Listed Beverage, Food and Tobacco Companies in Sri Lanka

2018 ◽  
Vol 3 (2) ◽  
pp. 83-90
Author(s):  
V.A. Subramaniam ◽  
S. Anandasayanan
Keyword(s):  
Capital Structure ◽  
Stock Prices ◽  
Least Square Method ◽  
Least Square ◽  
Share Price ◽  
Share Prices ◽  
Food And Beverage ◽  
Macroeconomic Indicators ◽  
Level Of Significance ◽  
The Relationship

The share price of a firm is affected by various factors. Determination of share price is not an easy task. The share price movement is based on the firm’s fundamentals, Market efficiency, Macroeconomic Indicators and Perception of the Investors. Several studies have proven that share price of firms are explained by its capital structure. This study tests the relationship between capital structure and share prices of the listed Food and Beverage Tobacco companies in CSE for the period from 2011/2012 to 2016/2017. It analyzes the relationship between share price and capital structure by employing panel least square method approach. According to the results of the study there is a positive relationship between debt to equity and share prices .The results were statistically significant at 1% level of significance. The results indicate adding debt to overall capital positively effects on the share prices. These findings have important implications for managers or people who take decisions regarding capital structure. The changes in capital structure may have a significant impact on stock prices of the companies.

scholarly journals The effects of financial factors on Peruvian mining companies share price

Accounting ◽  
2021 ◽  
pp. 373-380 ◽  
Author(s):  
Almendra Carhuamaca-Flores ◽  
Vania Malena Almonacid-Carranza ◽  
Nivardo Alonzo Santillan-Zapata ◽  
Pedro Bernabe Venegas-Rodriguez ◽  
Jimmy Alberth Deza-Quispe
Keyword(s):  
Fixed Effects ◽  
Share Price ◽  
Relative Importance ◽  
Dividend Yield ◽  
Book Value ◽  
Share Prices ◽  
Financial Factors ◽  
Earnings Per Share ◽  
Fixed Effects Regression ◽  
The Relationship

This research analyses the relationship and relative importance of financial factors on the Peruvian mining copper companies´ share prices from 2010 to 2018. Voting common share prices were focused and book value, dividend per share, dividend yield, price earnings, earnings per share and roe were employed as regressors. Fixed-effects regression was used, and tests of stationarity, distribution, and specification harnessed. It was found that earnings per share and dividend yield had a positive and significant relationship with share prices, while book value had a negative one.

scholarly journals Relevance Of Devidend Policy As The Mediation On The Relationship Between Financial Performance and Debt On Share Prices

2021 ◽  
Vol 7 (1) ◽  
pp. 180-192
Author(s):  
Irma Tyasari ◽  
Supami Wahyu Setiyowati
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Dividend Policy ◽  
Share Price ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Share Prices ◽  
Correlational Research ◽  
Analysis Technique ◽  
The Relationship

The investors place great importance on the share price of publicly traded companies since it may reflect the company’s value. The research objective is to examine the relationship between financial performance and debt at share prices through dividend policy. The method of the research used is quantitative and correlational research. The data analysis technique is the use of smart PLS. The results of the study explain that financial performance has a positive effect on stock prices in the mediation of dividend policy. Debt negatively affects share price mediated by dividend policy. The implication of the study is that companies should consider the benefits as well as risks of borrowing funds from third parties. Investors and potential investors before investing their money in stocks must pay attention to financial performance, corporate debt and dividend policy so that they do not experience losses in their investment.

scholarly journals Chief executive officer’s gender and firm performance in the JSE SRI firms

2017 ◽  
Vol 13 (1) ◽  
pp. 73-78 ◽  
Author(s):  
Siphiwa L. Baloyi ◽  
Collins C. Ngwakwe
Keyword(s):  
Firm Performance ◽  
Gender Discrimination ◽  
Secondary Data ◽  
Chief Executive ◽  
Share Price ◽  
P Value ◽  
Chi Square ◽  
Net Profit ◽  
The Relationship ◽  
Ceo Gender

This paper evaluated the relationship between chief executive officers’ gender and firm performance. Therefore, the specific objectives of the paper were: 1) to evaluate the relationship between the CEO’s gender and company turnover; 2) to assess the relationship, the CEO’s gender and share price; 3) to examine the relationship between the CEO’s gender and net profit. The paper applied the positivist research method, which is a quantitative approach as it sought to measure the relationship between variables. Secondary Data on CEO gender, turnover, share price and net profit were collected from the archives of integrated report of 16 JSE SRI Companies that had a complete disclosure of the research variables. The paper used the Chi-square statistics (Phi and Cramer’s V tests) to test the relationship between CEO gender, turnover, share price and net profit. Findings from the statistical results showed that the Phi and Cramer’s V test gave a P value greater than 0.05 (P>0.05), which shows that within the sample of companies, there is no significant relationship between CEO’s gender, net profit, share price and turnover. The research concludes and recommends that gender might not necessarily affect performance, at least within the sample of companies, therefore, there should be no gender discrimination on CEO’s position. Women should, therefore, receive support to assume the position of CEO. This finding provides an agenda for further research to use broader sample across industry sectors to examine this relationship further, as gender is an important component of sustainable development goals.

scholarly journals THE EFFECT OF THE FINANCIAL RATIOS ON THE SHARE PRICE OF INSURANCE COMPANIES LISTED IN THE IRAQI STOCK EXCHANGE MARKET USING MULTIPLE REGRESSION ANALYSIS (APPLIED RESEARCH IN THE IRAQI STOCK EXCHANGE MARKET)

2018 ◽  
Author(s):  
Othman Amin
Keyword(s):  
Multiple Regression ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Share Price ◽  
Financial Ratios ◽  
Insurance Companies ◽  
Exchange Market ◽  
Share Prices ◽  
Research Population ◽  
The Relationship

<p><em>This research aims to identify the most important financial ratios affecting the share price of insurance companies listed in the Iraqi Stock Exchange Market (ISEM) during the period 2006-2015, and to indicate which ratios are more influential than others on share prices. The research population which consisted of (4 companies) is taken from insurance companies listed in the Iraqi Stock Exchange Market. The research sample consisted of one of these companies, representing  25% of the research population. In the statistical analysis a multiple regression model was used to determine the relationship between the independent and the dependent variables and the results of this study showed that there is a statistically significant relationship and effect between some financial ratios and the share price. The study gave a general background on the financial markets and the Iraqi Stock Exchange Market in particular.What characterizes this study from previous ones is demonstrating the effect of the financial ratios on the share price in the Iraqi setting for insurance companies listed in the Iraqi Stock Exchange using the multiple regression method.</em></p>

scholarly journals Does Audit Quality Moderate the Relationship between Accounting Information and the Share Price? Evidence from Jordan

2019 ◽  
Vol 12 (3) ◽  
pp. 58
Author(s):  
Yazan Oroud ◽  
Md. Aminul Islam ◽  
Tunku Salha Tunku Ahmad ◽  
Anas Ghazalat
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Firm Size ◽  
Audit Quality ◽  
Accounting Information ◽  
Listed Companies ◽  
Cash Flows ◽  
Share Price ◽  
Share Prices ◽  
The Relationship

Effect of accounting information on the share price has been having the share of attention from researchers for over six decades owing to the increasing of global financial crisis. Hence, this study attempts to contribute to literature by investigating such relationship in Jordan, a developing country. Specifically, this study investigates the relationship between the cash flow and accruals on share price of listed companies on Amman Stock Exchange for the year 2002 to 2014 also the effect of financial crisis on the share price before and after 2008. The model of this study was theoretically founded on both the agency and the signaling theories. To examine the developed model, the required data were gathered from the annual reports of 236 listed Companies. In analyzing the data, this study utilized the panel data methodology on 117 companies with 1521 observations. Moreover, this study used audit quality (audit firm size and audit tenure) as moderating variable. Based on the panel data results, the fixed effect model was used to examine the effect of the cash flows and accruals on the share price. The accruals and cash flows combined have significant effects on the share prices of the Jordanian companies listed on ASE. Audit quality, whether auditor&rsquo;s firm size or auditor&rsquo;s tenure, has significant moderating effect on associations of the share prices with accruals and with cash flows and the 2008 financial crisis had negative effects on share prices of the Jordanian companies listed on ASE. This study provides deep insights into relative usefulness of cash-based and accrual-based accounting measures and assist investors, regulators, analysts, and other stakeholders in evaluating the liquidity and financial performance of Jordanian companies listed on ASE, which may result in better allocation of economic resources by enabling the investors to take informed investment decisions, thus promoting a more efficient Jordanian capital market.

How does capital market respond to Certified Emission Reductions (CERs) announcements in India

2019 ◽  
Vol 45 (7) ◽  
pp. 950-965 ◽  
Author(s):  
Praveen Kumar ◽  
Mohammad Firoz
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Share Price ◽  
Emission Reductions ◽  
Content Type ◽  
Share Prices ◽  
The Mean ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between Certified Emission Reductions (CERs) information and a firm’s stock prices. Design/methodology/approach The present study is based on 193 CERs announcements by Indian firms over a 13-year period 2005–2017. The event study methodology is used to examine the impact of CERs announcements on a firm’s share prices. Findings The study suggests that the issuance of CERs did not produce any significant abnormal return. More specifically, the outcomes of event study shows that over a two-day event window from the event day to the day after the event (i.e. days 0 to 1), the mean and median of AARs are −0.25 and −0.34 percent, respectively. The abnormal returns on day 1 are not statistically significant as per the t-test. Moreover, the mean and median of abnormal returns after one day (−1) are negative, indicating that investors react negatively to CERs announcements. However, the mean and median of CAARs over both the two-day (i.e. days −1 to 0 and days 0 to +1) and three-day (i.e. days −1 to +1) event windows are positive, but not statistically significant based on the t-test. Research limitations/implications The findings of the study are quite comprehensive, relatively used only market-based criteria of a firm’s financial performance, e.g., share price, at times, inhibits generalizing the results. Originality/value To the best of the author’s knowledge, the present study is a first of its kind to investigate the relationship between the CERs information and a firm’s stock prices.

scholarly journals Impact of Accounting Information on Share Price: Empirical Evidence from Pakistan Stock Exchange

2016 ◽  
Vol 3 (1) ◽  
pp. 124
Author(s):  
Muhammad Asif ◽  
Kashif Arif ◽  
Waqar Akbar
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Accounting Information ◽  
Time Frame ◽  
Share Price ◽  
Share Prices ◽  
The Impact ◽  
The Relationship

Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Exchange using KSE-30 companies. This is believed to be the first study which considers the aforementioned issues in the Pakistan’s capital market environment.

scholarly journals Short Run Macroeconomic Factors Affecting Car Sales in Proton

2020 ◽  
Vol 6 (1) ◽  
pp. 88
Author(s):  
Zahariah Mohd Zain ◽  
Lina Nadia Abd Rahim ◽  
Ahmad Shazeer Mohamed Thaheer ◽  
Amira Natasha Samsudin
Keyword(s):  
Secondary Data ◽  
Government Agencies ◽  
Sales Volume ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Number Of Factors ◽  
Car Sales ◽  
Macroeconomic Indicators ◽  
Short Run ◽  
The Relationship

Malaysia had committed to be an automotive-producing country through the establishment of Proton in the year 1983. Since then, Proton has been quite a significant contributor to the Malaysian economy. People are influenced to purchase cars due to a number of factors; and these factors are studied in this research. This paper aims to identify the relationship between the macroeconomic indicators and the sales volume of cars in Malaysia. In achieving the objective, the study used secondary data gathered from Internet search, journals, and government agencies, which were then analyzed using descriptive statistic, correlation analysis, and multiple regression statistic. The result of the study shows that inflation and unemployment contribute significantly to the volume of car sales for Proton. On the other hand, gross domestic product (GDP) and interest rate do not have significant impact on the sales volume. These findings will provide Proton with valuable insights about which factors are the most influential, so they could strategize accordingly.

scholarly journals Kontribusi Pajak Daerah Terhadap Produk Domestik Regional Bruto Kabupaten Bolaang Mongondow Selatan

2021 ◽  
Vol 1 (1) ◽  
pp. 16-26
Author(s):  
Syawaluddin ◽  
Rina Safitri
Keyword(s):  
Time Series ◽  
Data Collection ◽  
Local Governments ◽  
Rapid Development ◽  
Secondary Data ◽  
Domestic Product ◽  
Local Taxes ◽  
Macroeconomic Indicators ◽  
The Relationship ◽  
Observation Period

Local taxes are taxes whose management and collection are carried out by local governments and for the benefit of the region itself as well as a source of regional income that contributes to the Gross Regional Domestic Product (PDRB). Gross regional domestic product (GRDP) is one of the macroeconomic indicators designed to present economic events in the exploitation of these resources and further understand the relationship between the transactions that occur in between. In Bolaang Mongondow Selatan Regency, the increase in Regional Original Income (PAD) is dominated by the contribution of tax revenues and levies. Local taxes and levies are the largest revenues that can contribute to the South Bolaang Mongondow Regional Original Revenue. Local taxes are able to become a mainstay in contributing to GRDP, because it is in line with the rapid development and economy in Bolaang Mongondow Selatan Regency. The purpose of this study was to determine the contribution of local taxes to the Gross Regional Domestic Product (PDRB) of Bolaang Mongondow Selatan Regency. This research is a quantitative study using secondary data (time series) in the 2010-2020 observation period. PDRB data collection is obtained from BPS South Bolaang Mongondow Regency, while regional tax and PAD data are obtained from South Bolaang Mongondow BPKPD. The results obtained are approximately 62.3% of local taxes have a significant effect on contributing to the Gross Regional Domestic Product (GRDP).

Sign in / Sign up

Export Citation Format

Share Document