Firm attributes and share price fluctuation of deposit money banks listed in Nigeria

Adamu Adamu Idris (Federal University Dutsin-Ma, Katsina Nigeria)
Oyindamola Olusegun Ekundayo (Department of Accounting and Finance, Federal University, Dutsin-ma, Nigeria)
Abdulateef Yunusa (Department of Accounting and Finance, Federal University, Dutsin-ma, Nigeria)

Jurnal Ekonomi Modernisasi
Vol. 15 No. 2 (2019): Juni

This paper examined firms’ attributes impact on the fluctuation of share prices of listed deposit money banks in Nigeria. Ex-post facto research design was employed, and 13 deposit money banks firms were selected out of 15 from 2006-2016. Descriptive statistics were presented, and correlation analysis was conducted to understand the degree of relationship among the variables. Ordinary least Squares regression was used to ascertain the combined impact of the explanatory variables on the share prices. The study finds four firms’ attributes (dividend ratios, book value, growth and liquidity) to have statistically significant effect on share prices. Companies with high dividends and asset growth as well as low liquidity and book values are more likely to experience higher share prices; hence, the need for investors to be aware of these attributes in making investment decisions. The findings contribute to the existing literature by extending the study to the banking industry.