Abstract
This study examined the effect of profitability indicators and profitability investment of
quoted small and medium scale enterprises in Nigeria. This study sought to decide the impact
of profitability indicators on equity investment of quoted small and medium scale enterprises
in Nigeria. The study was anchored accelerator theory of investment, Tobin q theory of
investment, financial liberalization thesis, Keynesian theory of interest rate, random walk
theory and efficient market theory. Descriptive research technique was adopted. The target
group was 10 quoted small and medium scale enterprises where data was obtained for
duration of eleven years from 2019-2023. Equity investment was modeled as the function
return on assets, return on equity, return investment earnings per share and net profit
margin. The first objective found that return on assets has a positive but not significant effect
on equity investment. The second objective found that return on investment has a positive but
not significant effect on equity investment. The third objective found that earnings per share
has a negative but not significant effect on equity investment while the fifth objective found
that return on equity has a positive but not significant effect on equity investment The study
concluded that return on assets have positive but no significant equity investment of quoted
small and medium scale enterprises in Nigeria. Return on investment have positive but no
significant equity investment of quoted small and medium scale enterprises in Nigeria and
earnings per share have negative but no significant equity investment of quoted small and
medium scale enterprises in Nigeria. the study recommend that quoted small and medium
scale enterprises should embark on investment diversification, effective portfolio
management strategies to enhance profitability and attract equity investors. Measures such
as effective assets and liability management practices should be adopted by the quoted small
and medium scale enterprises to increase profitability as this can increase equity investor of
the firms. Financial plans such as optimal capital structure should be adopted by the quoted
small and medium scale enterprises to increase profitability. Cost efficiency such that
reduces operating cost should be adopted by small and medium scale enterprises to increase
operating profit and All internal and external factors that affect negatively profitability of the
quoted small and medium scale enterprises should be discouraged.