ABSTRACT

This studyfocuses on the effect offinancialreport on share marketprice ofbanks in Nigeria. An investor who isfaced with a decision to either buy or sell a particular stock, there is need to resort to financial analysis ofthe company’s business over a period, to determine whether profits are rising or falling and the implication of future performance. However, due to the problems of acquiring adequate information, available finance may be directed into wrongfirms or organizations. The study made used ofan ex-postfacto research design. The data collected were then tabulated and analyzed using the simple regression analysis. The result revealed that the estimated coefficient ofthe regression parameter have a positive sign and thus conform to our a-priori expectation. The implication ofthis sign is that the dependent variable Share Market Price (SMP) is positively affected by Earning Per Share (EPS), Dividend Per Share (DPS) and Profit After Tax (PAT). The study also revealed that there is a very high relationship between Earning Per Share (EPS), Dividend Per Share (DPS), Profit After Tax (PAT) and Share Market Price (SMP). Conclusively, as every financial report is published to provide accounting information to external users, it does not guarantee a success in their investment. However, adequate understanding offinancial report and the application ofthis accounting report woidd result to favourable investment. It can therefore be concluded thatfinancial report has a great impact on the investment decisions of investors based on their reliance, understanding and application ofthis information. It is recommended that investors should be interested in understanding the components ofthe annualreports as a better understanding wouldlead to better and more profitable investment. Investors should not only rely on the annual report but should also strengthen their knowledge and understanding of their investment through newspapers, magazines, stock exchange market and even from advice of stock brokers.