Research Objective: This study assessed the impact of earnings measurements, specifically net profit margin and revenue, on the share prices of consumer goods firms in Nigeria.
Methodology: An ex-post-facto research design was employed, covering data from 2012 to 2022. Secondary data were gathered from the annual reports of selected consumer goods firms, and a multiple regression analysis was conducted to determine the effects of the identified variables on share prices.
Findings: The analysis revealed that the net profit margin has a statistically non-significant negative effect on share prices (t = -1.608836, p = 0.1114). In contrast, revenue has a statistically significant positive effect on share prices (t = 3.149860, p = 0.0023). This suggests that revenue growth is a critical driver of investor confidence and value creation in the Nigerian consumer goods sector.
Conclusion: While net profit margin does not significantly influence share prices, revenue growth positively and significantly impacts stock prices, highlighting its importance in maintaining investor confidence and driving financial performance.
Recommendations: The study recommends that consumer goods firms focus on improving operational efficiency to enhance profit margins, even though net profit margin may not directly affect stock prices. Additionally, firms should prioritise expanding revenue streams through market expansion and product innovation to strengthen financial performance and boost investor confidence
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