Impact of Financial Information on the Profitability of Business Organizations in Nigeria
- Post by: airjournals
- April 1, 2022
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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
Chukwuani, Victoria Nnenna PhD. | FULL PDF