Evaluation of the Effect of Share Pricing and Investors Decision in the Nigerian Capital Market (1995 – 2014)
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This study empirically appraised the effect of share pricing on investors’ decision in Nigeria’s Capital Market. Secondary data was collected from the Central Bank of Nigeria spanning for the period 2006 to 2015. The work utilized Dividend Yield, Market Capitalization, Stock Turnover, and Average Share Price as proxies for Share Pricing; and investor’ decision is proxied by All Share Index. In order to achieve the objectives of the study, which include an investigation of the effect of Dividend Yield on All share index ascertainment of relationship between Market capitalization and All Share Index, etc, descriptive and inferential statistical tools among which are Means, Median, Standard Deviation, Ordinary Least Square, and ANOVA, were employed to analyze relevant data. Empirical results show that there exists a: positive and insignificant level of impact of Dividend Yield on All Share Index, negative and insignificant impact of Market Capitalization on All Share Index, negative and insignificant impact of Turnover on all Share Index and positive and insignificant impact of Average Share Prices on All Share Index. The major inference of this research is that investors deploy subjective means in analysis and/or the market is highly speculative and there is a weak level of efficiency in the market. Consequently, it is recommended among others that market regulatory authorities like the Securities and Exchange Commission (SEC) and Nigeria Stock Exchange (NSE) should ensure transparency to instill confidence in market information and provide timely information for greater market efficiency, market participants and investors should be trained on analytics to drastically reduce reliance on subjective analysis in decision making.
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