ABSTRACT

This study examined the effect of finwicial reporting on stock market price of

listed deposit money bank in Nigeria. The objectives were to determine the effect

of Earnings Per Share (EPS). Profit Alier Tax (PAT) and Dividend Per Share

(I)PS) on Stock Market Price (SMP) of Union Bank. Nigeria Plc fom 2012-2016.

There research questions and three hypotheses guided the study. An ex-post fticto

research design was adopted for this study. Data were collected through secondary

sources from annual reports. internet, journal articles, published books and

unpublished hooks that arc related to financial reporting and stock market prices

from 2012 to 2016. [he data collected were organized, tabulated and analyzed

1sing simple regression analysis. Analysis of hypothesis one revealed that PAT has

a significant effect on SMP: The result of hypothesis two showed that EPS has a

significant effect on SMP. [he finding of hypothesis three revealed that DPS has a

significant effect on SM P. [he stud\ revealed a very high relationship between

PAT. EPS. DPS and SMP. The study concluded that as every financial report is

published to pro\'ide accounting information to external users, it does not

guarantee a success in their investment. Rather, adequate understanding of

financial report and its application would result to favourable investment, since

financial report has a great effect on the investment decision of investors. It was

therefore recommended among others that investors should be interested in

understanding the components of the annual reports as d better understanding

would lead to better and more profitable investment. Also. that investors should

not only rely on annual report but should broaden knowledge and

understanding of their investment through magazines.. newspapers, stock exchange

market and even from advice from stock brokers.