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Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria

Received: 19 August 2019     Accepted: 20 September 2019     Published: 23 October 2019
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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.

Published in International Journal of Finance and Banking Research (Volume 5, Issue 5)
DOI 10.11648/j.ijfbr.20190505.11
Page(s) 114-125
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Pharmaceutical Firms, Shareholder’s Value, Evaluation, Finance, Nigeria

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Cite This Article
  • APA Style

    Ubesie Madubuko Cyril, Onuh Jonathan Echobu, Mbah Chris Chukwuemeka. (2019). Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria. International Journal of Finance and Banking Research, 5(5), 114-125. https://doi.org/10.11648/j.ijfbr.20190505.11

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    ACS Style

    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. Int. J. Finance Bank. Res. 2019, 5(5), 114-125. doi: 10.11648/j.ijfbr.20190505.11

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    AMA Style

    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. Int J Finance Bank Res. 2019;5(5):114-125. doi: 10.11648/j.ijfbr.20190505.11

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  • @article{10.11648/j.ijfbr.20190505.11,
      author = {Ubesie Madubuko Cyril and Onuh Jonathan Echobu and Mbah Chris Chukwuemeka},
      title = {Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria},
      journal = {International Journal of Finance and Banking Research},
      volume = {5},
      number = {5},
      pages = {114-125},
      doi = {10.11648/j.ijfbr.20190505.11},
      url = {https://doi.org/10.11648/j.ijfbr.20190505.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190505.11},
      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.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Evaluation of the Effect of Financial Factors on Shareholders’ Value of Listed Pharmaceutical Firms in Nigeria
    AU  - Ubesie Madubuko Cyril
    AU  - Onuh Jonathan Echobu
    AU  - Mbah Chris Chukwuemeka
    Y1  - 2019/10/23
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijfbr.20190505.11
    DO  - 10.11648/j.ijfbr.20190505.11
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
    SP  - 114
    EP  - 125
    PB  - Science Publishing Group
    SN  - 2472-2278
    UR  - https://doi.org/10.11648/j.ijfbr.20190505.11
    AB  - 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.
    VL  - 5
    IS  - 5
    ER  - 

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Author Information
  • Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria

  • Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria

  • Department of Marketing, Enugu State University of Science and Technology, Enugu, Nigeria

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