Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 209

Full Length Research Paper

Investors’ perception and profitability of listed companies: Evidence from Nigeria

Akinola Abisola
  • Akinola Abisola
  • Department of Accounting, School of Management and Social Science, Pan-Atlantic University, Lagos, Nigeria.
  • Google Scholar
Akinsulere Femi
  • Akinsulere Femi
  • Department of Accounting and Finance, School of Management and social science, Samuel Adegboyega University, Ogwa, Edo State, Nigeria.
  • Google Scholar

  •  Received: 12 August 2019
  •  Accepted: 23 September 2019
  •  Published: 31 October 2019


The stock market has continually been a source of economic development in most developing countries. This study examined the relationship between investors’ perception and profitability of quoted companies in Nigeria using secondary data obtained from the annual reports of forty (40) companies. The study employed the multiple regression techniques to analyze the relationship between investors’ perception (measured by dividend per share and earning per share) and profitability (measured by the return on equity). The results show that investors’ perception, when proxy by earnings per share, have a positive and significant impact on profitability. However, the study noted that investors’ perception, when measured by dividend per share, tend to have a positive effect on profitability, but it is statistically insignificant. By implication, investors and other stakeholders that are interested in investing in stocks can predict the earning capacity of listed firms in the stock market.


Key words: Investors, perception, listed companies, profitability, Nigeria.