Investment Appraisal Methods and Stock Value of Quoted Small and Medium Scale Enterprises: An Estimated Panel Data Study from Nigeria

This study examined the relationship between investment appraisal methods and stock value of quoted small and medium scale enterprises in Nigeria. Cross sectional data was sourced from financial statements of the quoted small and medium scale enterprises. Stock value was modeled as the function of accounting rate of return, internal rate of return, net present value, payback periods and profitability index. A pooled panel regression model was adopted to estimate the regression equation. After cross sectional validity of the models, the results validate the use of fixed effect model. The study found that investment appraisal techniques explained 41.6 percent movement on stock value of the quoted small and medium scale enterprises firms and that accounting rate of return have positive and significant effect on stock value, that internal rate of return have negative and significant effect on stock value, that net present value have negative and significant effect on stock value, that paybac