Influence of Financial Management Practices on Earnings per Share of Quoted Industrial Goods Companies in Nigeria

Authors

  • Lateef Kolawole Fijabi Precious Cornerstone University, Garden of Victory, Olaogun Street, Ibadan and 200225, Nigeria
  • Sunday Owolabi Babcock University, Ilishan Remo and 121103, Nigeria
  • Ayodeji Ajibade Babcock University, Ilishan Remo and 121103, Nigeria
  • Festus Ogedengbe Precious Cornerstone University, Garden of Victory, Olaogun Street, Ibadan and 200225, Nigeria

Keywords:

Asset Turnover, Debt, Dividend payout, Earnings per share, Financial management practices, Industrial Goods Companies, Working capital

Abstract

The study investigated the influence of financial management practices on the earnings per share of quoted industrial goods companies in Nigeria (Debt, Asset turnover, Dividend payout, Cash flow investing, and Working capital as independent variables and Earnings per share as the dependent variable) for the period 2011 to 2021. An ex-post facto research design was used. All the quoted industrial goods companies in Nigeria with up-to-date data from their annual reports and accounts as of 31st December 2021 were used. The findings from the regression model showed that financial management practices had a significant effect on earnings per share of quoted industrial goods companies in Nigeria (Adjusted R2=0.2752, Chi2(5)  = 20.15, p = 0.0012). The regression result also revealed that debt had a negative and significant effect (F=-0.039, p=0.008), asset turnover had a negative and significant effect (F=-3.202, p=0.016), dividend payout had a positive and significant effect (F=0.023, p=0.047), cash flow investing had a positive and insignificant effect (F=2.590, p=0.172) while working capital showed a positive and insignificant effect (F=0.054, p=0.825) on earnings per share of quoted industrial goods companies in Nigeria. It was recommended that investors should consider appropriate variables that impact earnings per share positively before investing.    

Keywords: Asset Turnover, Debt, Dividend payout, Earnings per share, Financial management practices, Industrial Goods Companies, Working capital,

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2023-07-09

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Fijabi, L. K., Sunday Owolabi, Ayodeji Ajibade, & Festus Ogedengbe. (2023). Influence of Financial Management Practices on Earnings per Share of Quoted Industrial Goods Companies in Nigeria. International Journal of Social Sciences: Current and Future Research Trends, 19(1), 13–40. Retrieved from https://ijsscfrtjournal.isrra.org/index.php/Social_Science_Journal/article/view/1389

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Vol. 19 No. 1 (2023)

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