Dublin Core
Title
Effects of share pricing on firms’ performance in Ghana
Creator
Frank Gyimah Sackey, Akotey Joseph Oscar
Description
This study is designed to examine the effects of share pricing on firm’s performance. Net profit earnings of the firm
was used as the dependent variable for the study whilst the independent variables constituted some characteristic
indicators that can affect the firm’s performance such as earnings per share, return on equity, return on assets, return
on investments and overheads. Five listed companies namely; the Ghana Commercial Bank, Enterprise Insurance,
Mechanical Lloyd, Aluworks Ghana Limited and Standard Chartered Bank were used for the study. A random
model was used to test for the effects of the various variables on firm’s performance using a panel data. The results
show that earning per share was significant and positive in explaining firm’s performance whilst return on
investment and overheads were significant but negative in explaining firm’s performance. Return on assets and
return on equity were however, insignificant in explaining firm’s performance. it is therefore recommended that
firms trade on the stock exchange to attract more shareholders through their share pricing as this will enable them to
increase their capital gain as well as the public patronizing not only in their shares but also being part of them and
hence patronizing their products since they will have a stake in it.
was used as the dependent variable for the study whilst the independent variables constituted some characteristic
indicators that can affect the firm’s performance such as earnings per share, return on equity, return on assets, return
on investments and overheads. Five listed companies namely; the Ghana Commercial Bank, Enterprise Insurance,
Mechanical Lloyd, Aluworks Ghana Limited and Standard Chartered Bank were used for the study. A random
model was used to test for the effects of the various variables on firm’s performance using a panel data. The results
show that earning per share was significant and positive in explaining firm’s performance whilst return on
investment and overheads were significant but negative in explaining firm’s performance. Return on assets and
return on equity were however, insignificant in explaining firm’s performance. it is therefore recommended that
firms trade on the stock exchange to attract more shareholders through their share pricing as this will enable them to
increase their capital gain as well as the public patronizing not only in their shares but also being part of them and
hence patronizing their products since they will have a stake in it.
Date
2011
Source
https://scholar.google.com/citations?view_op=view_citation&hl=en&user=dzxWX-AAAAAJ&citation_for_view=dzxWX-AAAAAJ:LkGwnXOMwfcC
Language
English