Global Journal of Business Management

Global Journal of Business Management ISSN 6731-4538 Vol. 3 (7), pp. 001-007, July, 2009. © International Scholars Journals

Full Length Research Paper

The impact of share market capitalization on a company’s performance: A case study in the Nigerian confectionary industry

Oluwatoyin, Matthew¹ and Gbadebo, Olusegun Odularu²*

¹Department of Economics and Development Studies, College of Business and Social Sciences (CBS), Covenant University, P. M. B. 1023, Km 10 Idiroko Road, Ota, Ogun State, Nigeria.

²Regional Policies and Markets NSF, FARA, Roman Ridge, Accra, Ghana.

Accepted 14 April, 2009

Abstract

This article focuses on the impact of companies’ shares on their performance, using one of the largest confectionary companies in Nigeria as a case study. In other words, the article analyses the correlation between the sales of shares and the growth of the company. While it adopts the Ordinary Least Square (OLS) analytical technique, using the company’s annual data for 20 years, it recommends that the confectionary company should implement policies that will encourage increase in their profit after tax, dividends and turnover as these variables have positive and statistically strong significance on the changes in the company’s performance and the value of its market capitalization.