Citation:

Benedict Soje, El-Maude Jibreel Gambo, Maryam Isyaku Muhammad. "Mediating Effect of Inflation on the Relationship between Cash Flow Accounting Information and Share Prices of Listed Firms in Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 379-386, 2023.

Abstract:

In addition to analyzing the mediating role of inflation on the links between cash flow and share prices of firms listed on the Nigerian Exchange Limited (NGX), this study also assesses the impact of cash flow on share prices of listed companies in Nigeria. The study makes use of information gathered from a sample of 75 companies chosen at random from the Nigerian exchange. The results of the regression analysis and structural equation model (SEM) analytical techniques show that the share price of companies listed on the Nigerian Exchange Limited is significantly negatively impacted by net cash flow per share and that inflation has no significant impact on this relationship. As a result of its effects on share price, the study advises investors in shares to pay closer attention to cash flow accounting data in order to effectively and efficiently manage their investments. Reiterating that there is a requirement to record the individual impact of inflation on all the accounting information, including cash flow accounting information, despite the fact that inflation does significantly mediate the relationship between cash flow and share price.

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Keywords:

Cash flow, Inflation, Share price.