IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 5 2023
DOI: https://doi.org/10.56201/jafm.v9.no5.2023.pg94.103

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Effects of Information Relevance of Market Share Price of Quoted Companies in Nigerian Exchange Group: Basic Materials Sector

Confidence, Joel Ihenyen Ph.D and Erebi, Mathew Gospel Department of Accounting

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Abstract

The purpose of this study is to analyze the impact of financial data on the stock prices of listed firms in the basic materials sector of the NGX. The particular goals are to analyze the market share price of basic material companies listed on the floor of the Nigeria Stock Exchange from 2010 to 2017 in relation to EPS, dividends per share, and return on assets. Secondary information was gathered from the NGX's audited financial statement disclosures. E-view statistical software was used to do regression analysis for inferential statistics on the hypotheses. The results of this analysis indicate that at the 5% level of statistical significance, Return on Assets has a positive and statistically significant influence on the market share price. Market share price is correlated with earnings per share and dividends per share to a lesser extent, although not directly. Overall, there was a positive correlation between the dependent and independent variables due to the significant impact of Return on Asset on Market Share Price. Therefore, it is advised that basic material enterprises in Nigeria enhance the quality of their financial reporting and increase the transparency of their accounting practices because of the substantial impact that accounting information has on market price.

keywords:

Accounting Information, share price, investment decision

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References:

Adaramola, A.O., & Oyerinde, A.A. (2014). Value relevance of financial accounting information
of quoted companies in Nigeria: a trend analysis”. Research Journal of Finance and
Accounting, 5(8), 86-94.
Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal
of Accounting Research, 6(2), 159-178.
Chen, C., Danqing, Y. & Zili Z. (2013). Externalities of Mandatory IFRS Adoption: Evidence
from Cross-Border Spillover Effects of Financial Information on Investment Efficiency.
Journal of American Accounting Association, 88(3), 881-914.

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