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Effect of Firm Value and Accounting Information on Equity Investment in Nigeria

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  • Adeolu Thompson MAYAKI

    (Joseph Ayo Babalola University Ikeji- Arakeji Osun State)

  • Sunday Fatoba ADEBAYO

    (Adeyemi Federal University of Education Ondo, Ondo State)

Abstract

The study analysed the effect of firm value and accounting information on equity investment in Nigeria. This was with a view to providing information on the effect of accounting information and firm value on equity investment in Nigeria capital market. The study adopted the longitudinal research design and used secondary data. The population consisted of 168 quoted firms in the Nigeria Exchange Group as at 2021. Purposive sampling technique was used to select 50 firms whose data were consistently available and stocks traded on the Nigerian Exchange Group. Data on variables such as return on equity, dividend per share, earnings per share, business growth, profitability, firm size and market value of equity were obtained from Annual Reports and accounts of sampled listed firms in the Nigerian Exchange Group factsbook for the period 2011 – 2020. The data obtained were analysed using regression analysis technique involving pooled Ordinary Least Square (OLS) Model, Fixed Effect Model (FEM) and Random Fixed Model. Firm value and accounting information had complementary statistically significant effect on equity investment (R2= 84.72, P

Suggested Citation

  • Adeolu Thompson MAYAKI & Sunday Fatoba ADEBAYO, 2025. "Effect of Firm Value and Accounting Information on Equity Investment in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 12(2), pages 15-24, February.
    • Handle: RePEc:bjc:journl:v:12:y:2025:i:2:p:15-24
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    References listed on IDEAS

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    1. Nur Triani & Deden Tarmidi, 2019. "Firm Value: Impact of Investment Decisions, Funding Decisions and Dividend Policies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(2), pages 158-163, April.
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    4. Mohamed A. Omran & Ahmed M. El-Galfy, 2014. "Theoretical perspectives on corporate disclosure: a critical evaluation and literature survey," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 22(3), pages 257-286, August.
    5. Miller, Merton H & Rock, Kevin, 1985. "Dividend Policy under Asymmetric Information," Journal of Finance, American Finance Association, vol. 40(4), pages 1031-1051, September.
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