FIRM SPECIFIC CHARACTERISTICS AND STOCK MARKET RETURNS OF LISTED MANUFACTURING COMPANIES IN NIGERIA.

This study investigated the influence of firm-specific characteristics on stock market returns measured by stock price appreciation among listed manufacturing companies in Nigeria over a nine-year period (2015–2023). Adopting an ex post facto research design, the study used panel data regression analysis was conducted on a selected sample of 10 manufacturing firms listed on the Nigerian Exchange Group. The independent variables included firm size, firm age, leverage, price-earnings ratio, productivity growth rate, and sales growth rate. The random effects regression model revealed that none of the firm-specific characteristics exerted a statistically significant influence on stock price appreciation. Interestingly, the sales growth rate showed a marginal but negative effect on stock returns. The findings shows that the Nigerian stock market may be inefficient, with exogenous or behavioral factors playing a more dominant role than firm-level fundamentals. Investors should integrate macroeconomic and sentiment-driven analyses, while policymakers and regulators should enhance transparency and information flow in the market. This study contributes to the understanding of the disconnect between firm-specific metrics and equity valuation in emerging markets.