Effect Of Financial Ratios On Shareholders Investment Decisions Of Listed Firms In Nigeria:- Kalu Susan A
ABSTRACT
The
study investigated effect of financial ratios on shareholders’ investment
decisions of listed firms in Nigeria.The study used ex post facto research
design and extracted secondary data from annual reports of selected
manufacturing firms listed in the Nigeria stock Exchange within the period 2014
to 2018.To ascertain the relationship of the variables it employed earnings per
share and price earnings ratio as collective proxies for financial ratio while
percentage change in mumber of shareholders was adopted as proxy for
shareholders investment decision of firms. The study adopted panel least
squares method of data estimation based on the cross section and time series
data employed to determine whether financial ratios affect shareholders
investment decisions of firms in Nigeria. It was established that earnings per
share and price earnings ratio has significant effect on percentage change in
number of shareholders of firms in Nigeria. The study therefore concludes that
financial ratios has significant effect on shareholders investment decisions of
listed firms in Nigeria. It therefore recommends that the management offirms
should endeavour to create balance on their market value through efficient and
transparent practices and management should continue to provide detailed report
of earnings per share and implement it through bonus issues.
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KALU, A (2024). Effect Of Financial Ratios On Shareholders Investment Decisions Of Listed Firms In Nigeria:- Kalu Susan A. Repository.mouau.edu.ng: Retrieved Nov 22, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-financial-ratios-on-shareholders-investment-decisions-of-listed-firms-in-nigeria-kalu-susan-a-7-2
AMARACHI, KALU. "Effect Of Financial Ratios On Shareholders Investment Decisions Of Listed Firms In Nigeria:- Kalu Susan A" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-financial-ratios-on-shareholders-investment-decisions-of-listed-firms-in-nigeria-kalu-susan-a-7-2. Accessed 22 Nov. 2024.
AMARACHI, KALU. "Effect Of Financial Ratios On Shareholders Investment Decisions Of Listed Firms In Nigeria:- Kalu Susan A". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Aug. 2024. Web. 22 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-financial-ratios-on-shareholders-investment-decisions-of-listed-firms-in-nigeria-kalu-susan-a-7-2 >.
AMARACHI, KALU. "Effect Of Financial Ratios On Shareholders Investment Decisions Of Listed Firms In Nigeria:- Kalu Susan A" Repository.mouau.edu.ng (2024). Accessed 22 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-financial-ratios-on-shareholders-investment-decisions-of-listed-firms-in-nigeria-kalu-susan-a-7-2