FIRMS’ SPECIFIC FACTORS INFLUENCING SHARE PRICES IN LISTED INSURANCE FIRMS IN NIGERIA.

Abstract

The indices spelling performance are key to the movements often noticed on the market price of shares. Adekunle, Agbadudu and Ammeh (2015), citing Kurihara (2006), the stock markets play critical role in every economy of a nation. The criticality of the stock markets to the growth of every economy is based on the fact that resources are channelled to the most productive investment opportunities. They serve as a place where securities are traded as well as provide the platform for effective and efficient interactions between savers and users of capital by means of pooling of funds, sharing risk and transferring wealth among stakeholders. Further citing Uwuigbe, Olusegun and Godswill (2012), Adekunle et al concluded that the failure to understand the issues surrounding share price and its determinants has been the bane of the financial disposition of numerous corporations today. According to them, the debate on the factors influencing share prices is inconclusive as different factors have been reported by previous studies.

This calls for further empirical investigation, which could assist in understanding the forecasting of the Stock Market and the major factors influencing share prices in the Nigerian
insurance sector. Specifically, the objective of this study was to examine the Firm Specific Factors influencing Share Prices in Listed Insurance Firms in Nigeria.