IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg286.312

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Financial Management Decisions and Stock Price of Quoted Manufacturing Companies in Nigeria

Jeremiah Patrick EDET B.Sc., M.Sc., Enobong Patrick UMO

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Abstract

The study was conducted to examine the influence of financial management decisions on stock price of quoted manufacturing companies in Nigeria. Several financial decisions are often taken by managers of quoted companies with the aim of improving the wealth of shareholders by raising the market price of shares. This necessitated the conduct of this study to ascertain the direction of influence of the variables of financial management decisions on stock price of quoted manufacturing companies in Nigeria. Ex-post facto design was employed in the study because it required secondary data. Financial management decisions (independent variable) were represented by Dividend Decisions (DD) and Cashflow Decisions (CD). The dependent variable was Stock price (SP) while Revenue (REV) was the control variable chosen for the study. The population of the study was Thirty-four (34) manufacturing companies whose shares were traded on Nigerian Exchange Group (NGX) as at 31st December 2022. Twenty-seven (27) companies were selected as sample size for the study on the basis of availability of published financial statements. Data required were collected from the sampled companies for the period of 2013 to 2022. The nature of data was panel data. Descriptive statistics and fixed effect linear regression statistical tools were used to analyze the data collected for the study. The result of the analysis revealed that DD and CD had positive and significant influence on SP of quoted manufacturing companies in Nigeria. From the findings, the researcher concluded that financial management decisions had significant influence on stock price of quoted manufacturing companies in Nigeria. It was recommended that managers of quoted manufacturing companies in Nigeria should adopt retention policy that will help to pay more dividends to equity shareholders as this is capable of improving upon the stock price of the entities and policies of improving upon inflow

keywords:

Financial Management Decisions, Stock Price and Quoted manufacturing

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