Fundamental Factors and Stock Price Behaviour of Insurance Companies Listed in Nigeria
This study established the effects of fundamental factors on stock price behaviour of insurance companies listed in Nigeria. The study utilized panel regression using pooled Ordinary Least Squares (OLS) for the period of 2010-2019. Findings showed that earnings per share have statistical effect on stock price behavior in Nigeria. The result further showed that price earnings ratio has statistical effect on stock price behavior. Also, findings showed that dividend payout earnings ratio has statistical effect on stock price behavior in Nigeria. The last model showed that fundamental factor has statistical effect on stock price behaviour in Nigeria. Based on the empirical discoveries for the hypotheses, this study concluded that fundamental factors provide a precise result on insurance companies’ stock price trend which makes it easy to predict stock returns. The study recommended that companies should deploy strategies that will increase their firm size, balance sheet size and manpower in order to broaden activities on their stocks as this was equally established as one of the significant factors affecting stock price behaviour of listed insurance in Nigeria. Keywords: Dividend payout, Earning per share, Fundamental factors, Insurance companies, Price earnings ratio, Stock price behaviour.