Title: A survey of investors' share evaluation methods in Nigeria

Authors: Bashir Tijjani

Addresses: Department of Accounting, Imam Abdulrahman Bin Faisal University, P.M.B. 1982, Dammam, Saudi Arabia

Abstract: This paper investigates the share evaluation methods employed by Nigerian investors using a questionnaire survey. Specifically, the paper examines the views of investors and stockbrokers on the methods they employ to evaluate investments in ordinary shares. Five hundred and fifty questionnaires were distributed in three Nigerian cities (Abuja, Kano and Lagos). The survey responses were consistent with previous studies. For example, fundamental analysis was a more popular method among investors whereas risk and technical analyses were ranked second and third, respectively. However, the participants of this survey appeared to believe that investors used all three major techniques. The emphasis on risk analysis among Nigerian investors is different from the findings documented in other studies. The investors on the Nigerian Stock Exchange (NSE) appeared to be sophisticated; they study company fundamentals, consult financial statements, take account of changes in the wider economic environment, and pay attention to the riskiness of their shares.

Keywords: Nigeria; stock market; fundamental analysis; technical analysis; risk analysis; stockbrokers; regulators; investors.

DOI: 10.1504/JGBA.2019.107515

Journal for Global Business Advancement, 2019 Vol.12 No.5, pp.670 - 692

Received: 18 Sep 2019
Accepted: 28 Jan 2020
Published online: 31 May 2020 *

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