Saudi Journal of Economics and Finance (SJEF)
Volume-2 | Issue-02 | 49-56
Original Research Article
Share Prices Determinants in the Nigerian Stock Exchange
OLOWE Sunday
Published : April 30, 2018
Abstract
The study empirically examined the determinants of share price in the
Nigerian Stock Market from 1980 to 2000. Data from fifteen quoted companies were
used. The study adopted ordinary least square method i.e multiple regression to
analyse and interpret the data that were mainly sourced from the Nigerian Stock
Exchange. The model used expressed the share price as a function of some identified
determinant established by theories and literature. These determinants are earning
per share, dividend per share, money supply, oil price, the gross domestic product,
consumer price index and interest rate. After the analysis it appears that all these
variables are true determinants of the share price in Nigerian Stock market going by
the significance of the model at both 5% and 10% levels of significance and the
robustness of the R square which stood at about 0.93. This simply shows that these
identified determinants have been able to explain about 93% variation in the share
price of the companies. However based on the revelations concerning the
relationship of the share price and each of this variables it appears the that earning
per share, dividend per share, money supply, oil price and consumer price index all
exhibited positive relationship with the share price while interest rate and GDP
exhibited negative relationship.