An Investigation of firms’ characteristics on share prices of quoted firms in Nigeria

  • Abass A. Shiro University of Lagos
  • Willie Iyiegbuniwe University of Lagos
  • J. E. Ezike University of Lagos
Keywords: Impact, Individual firms’ factors, Share prices, Nigeria


This study examined the extent to which share prices are determined by changes in individual firms’ characteristics factors. Secondary data on six individual firms’ factors for 96 active firms from 2010 to 2016 were employed. The Panel model was used to examine the impact of individual firms’ factors on share prices. This model was considered appropriate for its ability to combine both the time series and cross sectional data and Hausman test was used to navigate between fixed effect and Random effect. The empirical findings of the study revealed that individual firms’ factors (Earnings per share, Dividend per share and Liquidity) have significant impact on share prices. The study therefore concluded that the major individual firms’ factors that have impact on share prices in Nigeria stock market are Earnings per share, Dividend per share and Liquidity. The researchers then recommended that a consistent market focused policy that encompasses liberalization of most sectors of the economy and a monetary policy that allows for market determined interest rate.