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Value relevance of Accounting informational; Evidence from Nigeria Quoted firms

Author

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  • AUDU, Omoakele Gabriel
  • ADEGBOLA, OluwaFemi Solomon

Abstract

This study examined the value relevance of accounting information in Nigerian firms. The study specifically examined the relationship between share price (MSP) and four accounting variables, earnings per share (EPS), dividends per share (DPS), operating cashflows (OCF) and book value per share (BVPS). To achieve the objectives of this research, an ex-post facto research design was employed in the study, secondary data was retrieved from the financial statements of 20 nonfinancial service companies listed on the Nigerian Exchange group (NGX) for a period of 11 years spanning from 2013-2023.The ordinary least squares regression method (OLS) was adopted to make the statistical decisions. The findings of the research reveal that there is a significant positive relationship between the dependent variable, share price (MSP) and some of the independent variables namely, earnings per share (EPS), dividends per share (DPS), operating cashflows (OCF). However, there was no significant relationship between share price and book value per share (BVPS). The study concludes that accounting variables namely, EPS, DPS and OCF have significant impact on the share price of Nigerian firms. The study recommends that Nigerian firms should prioritize transparent and accurate financial reporting, with a specific emphasis on earnings, dividends, and operational cash flow.

Suggested Citation

  • AUDU, Omoakele Gabriel & ADEGBOLA, OluwaFemi Solomon, 2025. "Value relevance of Accounting informational; Evidence from Nigeria Quoted firms," MPRA Paper 125905, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125905
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    References listed on IDEAS

    as
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    5. Peter Sunday DARAMOLA & Tunji SIYANBOLA, 2023. "Accounting Variables And Share Price: An Empirical Study On Quoted Deposit Money Banks In Nigeria," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 96-112, March.
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    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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