FINANCIAL ACCOUNTING BASED RATIOS AND STOCK MARKET RETURNS OF SOME SELECTED NIGERIAN DEPOSIT MONEY BANKS
 /  FINANCIAL ACCOUNTING BASED RATIOS AND STOCK MARKET RETURNS OF SOME SELECTED NIGERIAN DEPOSIT MONEY BANKS

FINANCIAL ACCOUNTING BASED RATIOS AND STOCK MARKET RETURNS OF SOME SELECTED NIGERIAN DEPOSIT MONEY BANKS


Dr. J.K.J ONUORA, EVBOTA CEPHAS IMUENTINYAN, OSEMWEGIE OKHOMINA JOY
ABSTRACT
The study examines the impact of financial accounting based ratios on stock market returns of some selected deposit money banks quoted in the Nigerian bourse. The finance based ratios include earnings per share ratio (EPS), Price earnings ratio (PE) and Market to Book Value ratio (MBV). The control variables adopted to make the analysis more robust is Book Value ratio. The study adopted daily stock market returns data for a time frame that ranges from financial year ended 2008 to 2013; and, applied multiple regression methodology, which enables easy analysis of the impact of a set of independent variables on a selected dependent variable. The results showed that earnings per share (EPS) ratio has an insignificant impact on market returns performance of the deposit money banks. The study further revealed that here exist an insignificant relationship between Price to Earnings (P/E) ratio and Stock Returns of the banks. The study further revealed that the effects of Market Value to Book Value (MBV) ratio on Stock Returns of Nigerian publicly quoted deposit money banks are relatively insignificant. Overall, the empirical findings generally support the view that market based financial ratios do have some impact in the stock market returns of a frontier market such as that of Nigeria. The study recommends that Nigeria should strive to develop and implement detailed capital market master plans and country specific financial market reforms. In particular, such reforms should be guided by the adoption of international best practices, and standards covering issues such as banking system regulation and supervision, data dissemination in the financial market and sound corporate governance.

Journal Article
PDF, 137.2 KB
Creative Commons LicenseCreative Commons license
Accounting, Banking and Finance
N/A
Finance, Ratios, Stock, Market, Returns, Banks, Nigeria
Christian Bassey
17th April, 2018
17th April, 2018
http://oer.mciu.edu.ng/wp-content/uploads/2015/04/BASE-RATIOS-Mr-Cephas.docx


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