IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 10 2024
DOI: 10.56201/jafm.v10.no10.2024.pg160.173

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Value Relevance of Accounting Information and Market Value of Listed Non-Financial Firms in Nigeria

AKANJI, Olubukola Olajumoke, ADEDOYIN, Adewumi Ramat (Ph.D), OLANIPEKUN Kolawole, IDOWU Oluwafemi Olusegun

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Abstract

This study examined the influence of accounting information represented by earnings per share and book value per share on the market value of listed non-financial firms in Nigeria. The study employed secondary data which were obtained from the audited annual reports and accounts of Seventy (70) listed non-financial firms in Nigeria from 2013 – 2022. Data collected were analyzed using descriptive statistic and fixed effect panel regression in line with the outcome of specification tests for the of the study’s hypotheses. The study utilized Ohlson’s model by representing the firm value with the share price. The results revealed that earnings per share recorded positive and significant influence (t-stat=16.08; P-val. <0.01) on the value Nigerian listed non-financial firms while the impact of book value per share on the value of the sampled firms is negative and significant at 10% (t-stat =- 1.78; p-val <0.1) respectively. In conclusion, the study found evidence earnings per share and book value per share had strengthen market value of listed non-financial firms Based on these findings, it is recommended that management of listed non-financial firms in Nigeria should improve their operations in a way that will enhance their earnings and profitability which would in turn increase their share price.

keywords:

Accounting information, market value, share price, earnings per share

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