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. 10 2023
DOI: https://doi.org/10.56201/jafm.v9.no10.2023.pg1.12

---

A Theoretical Review of The Impact of Accounting Information on Capital Markets in Nigeria

Dr. Ogiriki Tonye (Associate professor), Question Christiana

---

Abstract

The study focused on the impact of accounting information on capital markets in Nigeria. Accounting information is very important, especially, when sourcing for funds for possible expansion. With the use of secondary data, the study adopted library and theoretical literature survey approach and quotient research analysis. Extant literature was reviewed and the result shows that accounting information impacts greatly on capital markets in Nigeria through the participants and instruments. And that without the accounting information capital market participants will not respond as well. This research work also noted the strategic role accounting information provides for users of the information in making accurate decisions and in understanding their business properly. The qualitative characteristics of accounting information have a major influence in economic decision making process to owners, managers and creditors/customers. Transparency in financial reporting enables investors, creditors and contributors in the market to assess the company's financial condition. In other words, transparent financial information can help companies achieve good investment opportunities and improve the supervisory role of managers by reducing information asymmetry. Achieving this goal requires that the information has the necessary quality and transparency. Therefore, capital markets can function better through consistent practice and availability of accounting information in Nigeria. It is also noted that financing opportunities and providers of funds needs accounting information to ensure financial security. This study also advised policy makers and

keywords:

Accounting information, Financial reports, Transparency, Capital, Capital market.

---

References:

Abdullahi, M (2014). An evaluation of the role of accounting information to the sustainable
development of Small and Medium Scale Enterprices in Nigeria. Proceeding of the
Multi-Disciplinary Academic Conference on Sustainable Development, 2(3), 1-4.
Abusomwan, R.E., Atu, O.G, & Atu, O.O.K. (2016). Financial Reporting for Small Scale
Enterprice. Igbenedion University Journal of Accounting, 2(1), 11-39.
Ahmadi, A. & Bouri, A. (2018). The accounting value relevance of earnings and book value:
Tunisian banks and financial institutions. International Journal of Law and
Management, 60(2), 342–354
Amidu, M, Effah, J., & Abor, J (2011). E-accounting practices among Small and Medium
Enterprice in Ghana. Journal of Financial and Management, 14(1), 15-24.
Ankrah, E., Mensah, C.C.Y. & Ofoni-Atta, K. (2015). The Relevance of Accounting Information
in the management of Small Scale Businesses in the Yilo Krobo District in Ghana.
European Journal of Business and Management 3(7), 2222-2839.

Barney, J. (1997). Gaining and Sustaining Competitive Advantage. Reading, MA: Addison-
Wesley.

DOWNLOAD PDF

---

Back