PATTERN AND TREND ANALYSIS OF RETAINED EARNINGS AMONG LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

The study analysed the trend and pattern of retained earnings among listed manufacturing firms in Nigeria from 2008 -2018. The study adopted descriptive research design and used secondary data.

The population of the study comprised of 78 listed manufacturing firms on the Nigeria Stock Exchange as at the end of 2018. Purposive sampling technique was used to select firms with upto- date published financial data and whose stock were traded on the stock market totaling 56. The data was analysed using table, percentages and graph. The result showed marginal changes in retained earnings and a non-linear trend as retained earnings curve decreased by 1.8% between 2008 and 2011, levelled off between year 2013 and 2014, increased by 2.3% between 2015 and 2017 and then moved in opposite direction by 0.6% from 2017 to 2018. A policy implication with respect to this result is that Nigeria’s manufacturing sector lacked adequate reserve to withstand any adverse unforeseen circumstances that may arise within the economy.