Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria
International Journal of Finance and Banking Research
Volume 5, Issue 5, October 2019, Pages: 114-125
Received: Aug. 19, 2019; Accepted: Sep. 20, 2019; Published: Oct. 23, 2019
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Authors
Ubesie Madubuko Cyril, Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria
Onuh Jonathan Echobu, Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria
Mbah Chris Chukwuemeka, Department of Marketing, Enugu State University of Science and Technology, Enugu, Nigeria
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Abstract
The study ascertained the effect of Financial Factors on Shareholders’ Value of listed ePharmaceutical Firms on Nigeria Stock Exchange. The study ascertained the effect of Sales Revenue (SR), Investment in Working Capital (IWC) and Operating Profit Margin (OPM) on Earnings Per Share (EPS) in the pharmaceutical firms in Nigeria. Data for the study were sourced from Annual report of the sampled pharmaceutical firms. The data collected were analyzed using Eview. The results of the study show that Sales Revenue (SR) has a positive and significant effect on Earnings Per Share (EPS) of Nigeria pharmaceutical firms; investment in working capital (IWC) has a negative and insignificant effect on Earnings Per Share (EPS) of Nigeria pharmaceutical firms and Operating Profit Margin (OPM) has a positive and significant effect on Earnings Per Share (EPS) of Nigeria pharmaceutical firms. Based on the findings, the study recommends among others that Pharmaceutical firms in Nigeria should employ more of sales strategies in other to generate more sales for the firms to enhance returns to the owners of the business, the shareholders.
Keywords
Pharmaceutical Firms, Shareholder’s Value, Evaluation, Finance, Nigeria
To cite this article
Ubesie Madubuko Cyril, Onuh Jonathan Echobu, Mbah Chris Chukwuemeka, Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria, International Journal of Finance and Banking Research. Vol. 5, No. 5, 2019, pp. 114-125. doi: 10.11648/j.ijfbr.20190505.11
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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