Financial information and stock price changes : a case of systematically important banks (SIBS) in Nigeria

This study empirically examined the effect of financial information on stock price changes of systematically important banks (SIBs) in Nigeria. A secondary method of data collection was adopted. A purposive sampling technique was used in selecting six of the eight SIBs in Nigeria. An ex-post facto r...

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Bibliographic Details
Published in:African journal of business and economic research 2020-06, Vol.15 (2), p.71-86
Main Authors: Kolawole, Adebola Daniel, Olaoye, Festus Oladipupo
Format: Article
Language:English
Subjects:
Average Market Price Per Share
Banks (Finance)
Book Value Per Share
Earnings Per Share
Financial disclosure
Financial Information
Financial statements
Forecasts and trends
Information management
Prices and rates
Stock Price Changes
Stocks
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Summary:This study empirically examined the effect of financial information on stock price changes of systematically important banks (SIBs) in Nigeria. A secondary method of data collection was adopted. A purposive sampling technique was used in selecting six of the eight SIBs in Nigeria. An ex-post facto research design was employed. The variables tested for financial information were earnings per share (EPS) and book value per share (BVPS), while the average market per share (AMPS) was used as the proxy for stock price changes. Data gathered from the audited financial statements of the selected SIBs were analyzed using panel data analysis. Findings from the study showed that BVPS exerts a significant positive effect on the AMPS used to proxy stock price changes to the tune of 0.7799 (p=0.0219 0.05). The study thus concluded that financial information affects stock price changes of SIBs in Nigeria. It was therefore recommended that investors should be more concerned about BVPS as a basis for making profitable investment decisions. Also, through appropriate agencies, the government should subject the activities of SIBs in Nigeria to thorough supervision that will always ensure quality financial reporting and information disclosure.
ISSN:1750-4554
1750-4562
DOI:10.31920/1750-4562/2020/v15n2a4