VALUE RELEVANCE OF ACCOUNTING INFORMATION TO QUOTED NIGERIAN FIRMS
 /  VALUE RELEVANCE OF ACCOUNTING INFORMATION TO QUOTED NIGERIAN FIRMS

VALUE RELEVANCE OF ACCOUNTING INFORMATION TO QUOTED NIGERIAN FIRMS


EVBOTA, Cephas Imuentinyan, Dr. OLOWOYO BANJI JACOB, MR. OHONBA OSAMWONYI ERNEST
ABSTRACT
This paper investigates the value relevance of accounting information to quoted
Nigerian firms with the intent of ascertaining if there exist a relationship between publicly available accounting information and share price movements in the Nigerian capital market using Ordinary Least Square (OLS) regression technique. The regression results from our specified model reveals that Earnings Per Share reported in the income and financial statement is the only value relevant financial accounting information and investors mainly depend on stock brokers and non-financial information (fads, rumours and herd mentality) in executing their investment and divestment activities. Therefore, this study recommends that financial reporters should improve the quality of earnings and that stock brokerage firms should adequately train their staff since they are the main source of information to the investors. This recommendation is aimed at ensuring the growth and survival of the Nigerian bourse both in the immediate and long term.

Journal Article
PDF, 137.2 KB
Creative Commons LicenseCreative Commons license
Accounting, Banking and Finance
N/A
Value, Relevance, Accounting, Information, Firm, Stock Market, Nigeria
Christian Bassey
17th April, 2018
17th April, 2018
http://oer.mciu.edu.ng/wp-content/uploads/2015/04/Mr-Cephas-VALUE-RELEVANCE-OF-ACCOUNTING-INFORMATION-TO-QUOTED-NIGERIAN-FIRMS.docx


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