Impact of Financial Information on the Profitability of Business Organizations in Nigeria

Impact of Financial Information on the Profitability of Business Organizations in Nigeria

ABSTRACT

The study empirically investigated the impact of financial information on the profitability of companies listed on the Nigerian stock exchange in the manufacturing sector with a panel data set spanning the years 2010 to 2020. Earnings per share, debt-equity ratio, and dividend per share as measures of financial information while return on equity and return on assets were used as proxies for a firm’s profitability. For, Nigerian manufacturing companies, the findings show a significant positive association between firm size and profitability. Dividend per share, debt-equity ratio, and inflation influence profitability negatively. The empirical findings suggest that financial information impacts the profitability of a firm significantly. As a result, shareholders and investors should critically assess all relevant financial information within their grasp while examining the revenues and risk of their investments in a firm.

Keywords: Financial Information; Profitability; Business Organizations; Pooled OLS

Authorship

Chukwuani, Victoria Nnenna PhD. | FULL PDF

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