JOSEPH KASE
Department of Accounting
Akawe Torkula Polytechnic,
Makurdi, Benue State.
e-mail: [email protected]
ABSTRACT
This study examined share price movement and performance of oil and gas companies in Nigeria. The study employed correlational study design to explain the pattern of share price movement, as it relates to performance of oil and gas companies in Nigeria. Secondary data were obtained from published financial statements of 10oil and gas companies listed on the floor of the Nigerian Stock Exchange, from 2014 to 2018. Descriptive Statistics, Correlation and Ordinary Least Square Regression were used for analysis. The findings indicated that dividend per share (DPS) has positive but insignificant relationship with profitability, while Price earnings ratio (PER) has positive and significant association with profitability. The result further suggested that only 57% of the variations in the dependent variable were caused by independent variables, while 43% were accounted for by other factors not captured in the model. Based on the findings, the study recommended that share price of companies in the oil and gas sector can be enhanced if they consistently guarantee shareholders of dividends accruing from their investment, as dividends convey a message about a firm’s prospects and performance. This will further motivate investors to invest a substantial percentage of their income in order to benefit from a unit value of the companies’ earnings.
Key words: Share Price Movement, Performance and Oil and gas sector.