Influence of Earnings Per Share (EPS) on Equity Share Investment of Listed Companies in Nigeria

Abstract

This study examined the influence of earnings per share on equity share investment of listed companies in Nigeria. Survey and ex-factor research designs were used in the study, hence both primary and secondary methods of data collection were utilized. The population comprises of 192 listed companies on the Nigerian Stock Exchange and 225 registered and active brokerage firms while sample selection was based on stratified sampling technique. Primary data was from the direct responses of the Stock Brokers, Investment Advisers and Portfolio Managers, while the secondary data was from the listed companies’ annual reports and Nigerian Stock Exchange Market Statistics for the period of 10 years (2010-2019). The primary data was analyzed using descriptive statistics; mean percentage and standard deviation, while the secondary data was analyzed with panel model using inferential statistics. The finding revealed that a significant relationship exists between earnings per share and equity share investment in the listed companies in Nigeria. Earnings per share have a very high correlation coefficient with equity share investment, which means earnings per share significantly influence equity share investment of the listed companies in Nigeria. The study recommends that, all listed companies in Nigeria should prepare and disclose adequate information regarding earnings per share on the financial indicators used for investment decisions alongside with the mandatory financial statements.