Firm Attributes and Share Price of Quoted Firms in Nigeria: Analysis of Investors' Evaluations of Financial and Non-Financial Sectors
Year: 2025
Type: article
Abstract: Purpose: This study investigates how firm attributes influence the share price of quoted firms in Nigeria across financial and non-financial sectors. It examines the impact of firm age, audit firm size, earnings per share (EPS), firm size, leverage, and industry type on stock valuation. Design/Methodology/Approach: Using a panel dataset of 1,800 firm-year observations (2006–2023), the study applies the Fixed Effects Model (FEM) based on the Hausman specification test. Diagnostic tests, including multicollinearity and robustness checks, ensure result validity. Data analysis is conducted with E-Views 13. Findings: EPS and firm size significantly and positively influence share price, indicating investor preference for profitability and company scale. In contrast, audit firm size, firm age, leverage, and industry type show no significant effect, suggesting they are not primary drivers of stock performance. However, the interaction between firm size and industry type negatively affects share price, highlighting sectoral differences. Originality/Value: This study enhances understanding of share price determinants in emerging markets, integrating firm attributes with sectoral considerations. The findings provide valuable insights for investors, corporate managers, and policymakers on stock valuation and regulatory strategies. It underscores the importance of financial performance indicators while advocating sector-specific policies to improve market efficiency. Future research should explore macroeconomic and governance factors influencing share price in Nigeria.
Authors: Odoemelam, Ndubuisi, Wobo, O. Henry, Horsfall, Fed Vincent Fred
Institution: University of Port Harcourt
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6911742836
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