Impact Of Financial Report On Share Market Prices Of Banks In Nigeria:- Okoro Amarachi Igwe

ABSTRACT

This study’focuses on the effect offinancial report 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 tofinancial analysis ofthe company’s business over a period, to determine whether profits are rising orfalling 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 ofthissign is that the dependent variable Share Market Price (SMP) is positively affected by Earning Per Share (EPS), Dividend Per Share (DPS) andProfitAfter 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 everyfinancial 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 of this accounting report would result to favourable investment. It can therefore be concluded thatfinancial report has a great impact on the investment decisions of investors basedon theirreliance, understanding andapplication ofthis information. It is recommended that investors should be interested in understanding the components ofthe annual reports as a better understanding would lead 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.