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The Moderating Effect of Social Factors on Firm Attributes and Value Relevance of Listed Financial Firms in Nigeria

Author

Listed:
  • Patrick ZAYOL

    (Department of Accounting, Joseph Sarwuan Tarka University Makurdi, Nigeria)

  • Mike SOOMIYOL

    (Department of Accounting, Joseph Sarwuan Tarka University Makurdi, Nigeria)

  • Johnmark M. KORNA

    (Department of Accounting, Joseph Sarwuan Tarka University Makurdi, Nigeria)

  • Jessica M. GE

    (Department of Accounting, Joseph Sarwuan Tarka University Makurdi, Nigeria)

Abstract

This study investigates the moderating effect of social factors on the relationship between firm attributes and the value relevance of accounting information among listed financial firms in Nigeria from 2013 to 2023. Using panel regression techniques, the study examines how firm-specific characteristics such as leverage, liquidity, profitability, firm size, growth, EPS, book value per share, cash flow from operations, and dividend impact share prices when moderated by social disclosure practices. Data was obtained from audited annual reports and the Nigerian Stock Exchange Factbook, with social factors measured using a content analysis of Global Reporting Index (GRI) disclosures. The findings reveal that firm size and dividend payments retain significant value relevance, particularly when firms engage in socially responsible practices. However, attributes like leverage, book value, and cash flow showed diminished relevance when moderated by social disclosure. Overall, the results suggest that social factors can either amplify or diminish the market’s perception of traditional firm attributes, explaining the growing importance of non-financial disclosures in shaping investor decisions. Financial firms in Nigeria should be mandated by regulatory bodies to adopt standardized social disclosure practices and integrated reporting frameworks, as doing so enhances the value relevance of firm attributes and aligns corporate strategies with evolving stakeholder expectations in a socially conscious market environment.

Suggested Citation

  • Patrick ZAYOL & Mike SOOMIYOL & Johnmark M. KORNA & Jessica M. GE, 2025. "The Moderating Effect of Social Factors on Firm Attributes and Value Relevance of Listed Financial Firms in Nigeria," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 6(11), pages 69-89, November.
    • Handle: RePEc:ahd:journl:v:6:y:2025:i:11:p:69-89
    DOI: 10.37945/cbr.2025.11.06
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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