The Impact of Cash Flow on Stock Price in the Banking Sector of Nigeria
This study examined the impact of cash flow on stock price in the banking sector of Nigeria. The study adopted market price per share (MPPS) as proxy for stock price and the dependent variable, while cash flow per share ratio (CFPS), cash flow to total assets ratio (CFTA), and dividend to operating cash flow ratio (DOCF) were adopted as the independent variables. Data on the study variables for the period 2005 â€“ 2014 were collected from the annual reports and accounts of ten commercial banks listed on the NSE. The study employed multiple regression technique based on Windows SPSS 20 version to analysis the data. The findings of the study revealed that CFPS, CFTA and DOCF had positive significant impact on MPPS. Thus, the study concluded that cash flow has positive significant impact on stock price in the banking sector of Nigeria. The study recommended that preparers of financial statements should view the statement of cash flow as an important component of the annual report, while investors should put attention on the statement of cash flow in making investment decisions.
Volume (Year): 2 (2016)
Issue (Month): 7 (07-2016)
|Contact details of provider:|| Postal: Rahim Yar Khan 64200, Punjab, Pakistan|
Web page: http://arpgweb.com/index.php?ic=journal&journal=8&info=aims
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agarwal, Sumit & Mohtadi, Hamid, 2004. "Financial markets and the financing choice of firms: Evidence from developing countries," Global Finance Journal, Elsevier, vol. 15(1), pages 57-70.
When requesting a correction, please mention this item's handle: RePEc:arp:bmerar:2016:p:136-140. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Managing Editor)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.