FINANCIAL PERFORMANCE AND MARKET PRICE PER SHARE VOLATILITY: NIGERIA CONSUMER GOODS MANUFACTURING FIRMS EXPERIENCE

Abstract

Accounting information is used by stakeholders, especially investors, to make investment decisions especially to evaluating the share price of listed companies. Many investors relied too much on the quality of financial information reported but series of corporate scandals have placed severe doubt on the quality of financial reports circulating in a corporate environment. Hence this study tends to ascertain the effect of earring per share, dividend per share and return on equity on market price per share of selected consumer goods manufacturing firms listed on Nigeria Exchange Group. Ex post facto research design is adopted for the study. The population of the study is made up of nineteen (19) consumer goods manufacturing firms listed Nigeria. Ordinary Least Square (OLS) multiple regressions were used to analysed data collected through R –View 10 statistic software. The study observed that earning per share has a significant and positive impact on share price movement while dividend per share has a positive but non-significant effect on share price movement of listed consumer goods manufacturing firms in Nigeria. The study recommends among others that managers should look into their dividend policy in order to attract more investors to their firms.