Equity Market Timing and Earnings Yield: Evidence from Quoted Manufacturing Companies in Nigeria

Abstract

Market timers, as evidenced in literatures have critical management
responsibility of maximizing shareholders’ wealth. The study examines the
effect of equity market timing on earnings yield amongst quoted
manufacturing companies in Nigeria. The research adopts expo-facto
research design and data were obtained from five quoted manufacturing
companies through on-line retrieval method. Panel regression model was
employed to analyse the properties of time series and cross sectional data.
The result shows that equity timing is strongly significant in improving
company’s yield. The study therefore recommends that companies design
innovative securities to decrease the cost of capital and improve market
price of their shares instead of timing the equity market in general.