MICRO ECONOMIC VARIABLES AND STOCK PRICES OF COMPANIES ON NIGERIA EXCHANGE LIMITED

ABSTRACT

This study examined the effect of microeconomic factors on the performance of share price of listed insurance firms in Nigeria. Panel data of twenty two (22) insurance firms covering 2012 to 2022 respectively were collected from the audited annual publication of each firm as published by Nigeria Exchange Limited (NEL). Several statistical and econometric techniques of descriptive statistics, correlation analysis, panel unit root test and the panel regression of random effect methodology within static panel framework were adopted. Specifically among other things, dividend per share (DPS), Leverage (DER) and Earnings per share (EPS) have a significant positive effect on share price. However, only the effect of NAPS was not significant. Only the effect of ROE on SP is significant and negative at 5% level of significant. From the foregoing analysis, this study concludes that the microeconomic factors considered in this model are significant determinants share price of insurance firms Nigeria, though in different size and magnitude.