Value relevance of Accounting informational; Evidence from Nigeria Quoted firms

Omoakele Gabriel Audu and OluwaFemi Solomon Adegbola

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Financial Report; Value relevance; Earnings Per Share (search for similar items in EconPapers)
JEL-codes: M2 M4 (search for similar items in EconPapers)
Date: 2025-08-07
New Economics Papers: this item is included in nep-acc
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