Effect of Firm Financial Determinants on Stock Return of Listed Health Care Firms in Nigeria

Abstract

The study ascertained the effect of firm financial determinants of stock return of listed health care firms in Nigeria from 2010-2019. The study adopts ordinary least square for the analysis and the result shows that earnings per share and market value has positive but insignificant effect on stock return of health care firms in Nigeria, asset growth has negative insignificant effect on stock return while return on equity has positive significant effect on stock return of health care firms in Nigeria. This signifies that increase in return on equity will increase stock return. This could be as a result of more investment by potential investors. From the findings, the study concludes that financial indicators had significantly affected stock return of health care firms as evident from the overall model of the study. The study therefore recommends that investors should consider return on equity and other relevant ratios of the companies and movement in these ratios in selecting a resilient portfolio to invest. Also, the management of health care firms should strive to improve the financial performance in order to maximize the returns of their firms.