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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
DOI : 10.36348/sjef
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.
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