Financial Ratio Analysis and Market Price of share of Selected Quoted Agriculture and Agro-allied firms in Nigeria after adoption of International Financial Reporting Standard

Abstract

This study examined the relationship between Financial Ratio Analysis and Market Price of share in the Selected Quoted Agriculture and Agro-allied firm in Nigeria after Adoption of International Financial Reporting Standard(hereafter referred to as IFRS) from 2012 to 2016.The most extant literature on the relationship between Financial Ratio Analysis and Market Price in Nigeria were done when their financial statement is prepared as per Nigerian Accounting Standard and the results of most of these extant studies were mixed. Since Nigeria adopted IFRS in 2012 the relationship Financial Ratio Analysis and Market Price of Share is not yet fully known. This is a gap which this research study intended to address. This study used multiple regression analysis and is limited to the use of data taken from the selected firms' financial statement. Proxies used for Financial Ratio include Earnings per Share, Net Assets per Share, Liquidity Ratio, Debt Ratio, Return on Asset and Return on Equity. The result shows that Earnings per Share, Net Assets per Share, Debt Ratio and Return on Asset Ratio are positively and significantly related toNigerian Agriculture and Agro-Allied Quoted firms Market Price of Share. Also it was found that the Liquidity Ratio and Return on Equity Ratio are not significantly related to Nigerian Agriculture and Agro-Allied Quoted firms Market Price of Share.