IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 9 2024
DOI: 10.56201/ijbfr.v10.no9.2024.pg1.24

---

Accounting Information and Market Value of Quoted Firms: Panel Data Analysis of Small and Medium Scale Enterprises in Nigeria

Sampson Ikenna Ogoke

---

Abstract

This study focused on the effect of accounting information on the market value of quoted small and medium scale enterprises in Nigeria. Panel data were sourced from financial statement of 10 small and medium scale enterprises from 2014-2023. Market value of the firms was modeled as a function of earnings per share, return on equity and dividend per share and debt equity ratio. Panel data Ordinary least square method was used to determine the extent to which accounting information affect the market value of the quoted small and medium scale enterprises. The study found that 79.1 percent of the total variations in the market value of the quoted small and medium scale enterprises were accounted for, by the explanatory variables. The t-statistics and regression coefficient found that return on equity have positive and significant effect in increasing market value of the quoted small and medium scale enterprises, earnings per share have positive but no significant effect while dividend per share and debt equity ratio have positive and significant effect in determining increase in market value of the quoted small and medium scale enterprises. From the findings, the study concludes significant effect of accounting information on the market value of the quoted small and medium scale enterprises. The study recommends that management of the quoted small and medium scale enterprises should formulate dividend policy that enhances the market value of the firms and optimal capital structure should be formulated. Corporate strategies should be directed toward internal and external factors that affect earnings per share .Management of the quoted small and medium scale enterprises firms should formulate policies that will increase profitability and internal and external factors that affect negatively the debt equity ratio of the quoted small and medium scale enterprises should be discouraged.

keywords:

Accounting Information, Market Value, Panel Data Analysis, Small and Medium

---

References:

Abanis, T., Arthurs, S., & Derick, S. (2013). Financial management practices and business
performance of Small and Medium Enterprises in Western Uganda. African Journal of
Business Management, 7(38), 3875-3885.
Abdullahi, M. (2014). An evaluation of the role of accounting information to the sustainable
development of Small and Medium Scale Enterprises in Nigeria. Proceeding of the Multi-
Disciplinary Academic Conference on Sustainable Development, 2(5), 1-4.
Abdulrasheed, A., Khadijat, A., & Oyebola, F. E. (2012). Accounting principles of Small and
Enterprises in Ilorin Metropolis of Kwara State. Nigeria Research Journal of Finance and
Accounting, 3(2), 1-22.
Abusomwan, R. E., Atu, O. G., & Atu, O. O. K. (2016). Financial reporting for Small and Medium
Scale Enterprise. Igbinedion University Journal of Accounting, 2(1), 11 -39.
Achmad, D. D., Iman, H., & Melinda, C. R. (2020). Internal audit functions and audit outcomes:
Evidence from Indonesia, Cogent Business and Management, 7(1), 1-21
Adebayo, M., Idowu, K. A., Yusuf, B., & Bolarinwa, S. A. (2013). Accounting information system
as an aid to decision making in food and beverages companies in Nigeria. Australian
Journal of Business and Management Research, 3(9), 26 – 33.
Adigwe, P. K. (2012). Project financing for Small and Medium Scale Enterprises in Nigeria.
African Research Review: An International Journal, 6(1), 99-100.
Akanbi, T. A., & Adewoye, J. O. (2018). Investment in accounting information system and sales
growth: An investigation of Nigeria small and medium enterprise. Journal of Accounting
and Taxation, 10(6), 71-77,
Akingunola, R. O. (2011). Small and Medium Scale Enterprise and economic growth in Nigeria:
An assessment of financing options. Pakistan Journal of Business and Economic Review,
2(1), 78 – 97.
Alasadi, R., & Abdelrahim, A. (2007). Critical analysis and modeling of small business
performance (case study: Syria). Journal of Asia Entrepreneurship and Sustainability,
3(2), 1-131.
Amako, G. K. (2013). Accounting Practices of SMEs. A Case Study of Kumasi Metropolis in
Ghana. International Journal of Business and Management, 8(1), 73-83.
Amidu, M. (2005). Accounting information and management of SMEs in Ghana. The African
Journal Finance and Management, 14(1), 15-24.
Amidu, M., Effah, J., & Abor, J. (2011). E-accounting practices among Small and Medium
Enterprises in Ghana. Journal of Finance and Management, 14(1), 15-24.
Aremu, M. A. (2004). Small Scale Enterprises: A Panacea to poverty Problem in Nigeria.
International Research and Development Institute, Uyo. Journal of Enterprises
Development, 1(1), 1-8
Aremu, M. A., & Adeyemi, S. L. (2011). Small and Medium Scale Enterprises as a survival
strategy employment generation in Nigeria. Journal of Sustainable Development, 4(1),
200-206.
Ayyagari, M. T., Beck, T., & Demirguckunt, A. (2003). Small and Medium Enterprises across the
Globe, A new database. World Bank, Development Research Group. Washington DC:
Working paper 3127.
Baba, L. L., & Wario, W. (2018). Impact of accounting practices on financial performance of
SME’s in Ilala District of Tanzania. International Academic Journal of Human Resource
and Business Administration, 1(4), 1-21.
Babandi, I. G. (2019). Mitigating the challenges of small and medium enterprises in Nigeria.
SEISENSE Journal of Management, 2(3), 82-99.
Bamidele, V. O., Ayibiowu, S. I., Onumoh, A. Y., & Attahiru, Y. (2018). The place of effective
book keeping and accounting practices in Small and Medium Scale Enterprises (SMEs) in
Nigeria: Evidence from some selected SMEs in Zamfara state. International Journal of
Management Studies, Business and Entrepreneurship Research, 3(2), 80 – 87.
Brown, M. A. (2017). How important are small businesses to Economics? Retrieved from
smallbusiness.chron.com/important-small-businesses-local-economies-5251-html.
Chenhall, R. H. (2003). Management control system design within its organizational context.
Findings from contingency based research and direction for the future. Accounting
Organization and Society, 28(2-3), 127-168.
Child, T. & McGrath, R. (2001). Organization Unfettered: Organizational Firm in an Information-
Intensive Economy. Academic of Management Journal, 44(6), 1135-1148
Ihenyen,C.J., Fiateide, J.J & Question, Q. (2023). Theoretical review of accounting information
for the growth of small-scale enterprises in Nigeria. Federal University Otuoke Journal of
Management Sciences
Okafor, U. I., & Daferighe, E. E. (2019). Accounting practices and performance of Small and
Medium Scale Enterprises (SMEs) in Akwa-Ibom State, Nigeria. Journal of Business and
Management, 21(8), 01 – 09.
Okechi, O., & Kepegham, O. (2013). Factors influencing the adoption and use of ICT by Small
and Medium Scale Enterprises in Nigeria. African Journal of Computing and ICT. 6(1), 1-
Okoh, L. O., & Uzoka, P. (2012). The role of accounting information in the survival of Small Scale
Businesses in Warri, Delta State, Nigeria. International Journal of Economic Development
Research and Investigation, 3(1), 40-44.
Okoli, B. E. (2011). Evaluation of the accounting systems used by small scale enterprises in
Nigeria. Asian Journal of Business Management, 3(4), 235-240.
Oladipupo, M. T., & Ajape, K. M. (2013). Computer based accounting systems in Small and
Medium Enterprises: Empirical evidence from a randomized trial in Nigeria. Universal
Journal of Management, 1(1), 13-21.
Olamide, F. T., & Adeyemi, O. J. (2016). An evaluation of accounting anformation system and
performance of small scale enterprises in Kwara State, Nigeria. DBA Africa Management
Review, 6(1), 1-16.
Omar, A. A. J., & Ali, M, A. A. (2012). The impact of accounting information system in planning,
controlling and decision-making processes in Jodhpur Hotels. Asian Journal of Finance
and Accounting, 4(1), 174 -175.
Onah, B. C. E. C. (2011). Basic accounting skills needed by self-employed Building Craftsmen
through Entrepreneurship Education. International Technology Research Journal, 2(1), 1-
Onaolapo, A. A., & Adegbite, T. A. (2014). The analysis of the impact of accounting records
keeping on the performance of small scale enterprises. International Journal of Academic
Research in Business and Social Sciences, 4(1), 32-93.
Onaolapo, A. A., & Odetayo, T. A. (2011). Effect of accounting information system on
organizational effectiveness: A case study of selected construction companies in Ibadan,
Nigeria. America Journal of Business and Management, 1(4), 173 – 189.
Osotimehin, K., Jegede, C., Akinlabi, B., & Olajide, O. (2012). An evaluation of the challenges
and prospect of micro and small scale enterprises development in Nigerian. American
International Journal of Contemporary Research, 2(4), 174-185.
Oyebisi, M. O., Okere, W., Ochuwu, A., Adesanmi, D., Ibidunni, S., & Olusogo, O. (2017). ICT
and accounting system of SMEs in Nigeria. Management Science Letters 1(7), 1-8.
Pavtar, A. A. (2017). Accounting practices of SMEs: Challenges and effects: A survey of SMEs
in Makurdi Metropolis, Benue State, Nigeria. World Journal of Finance and Investment
Research, 2(1), 16 – 29.
Perez, R., Raquel, U. E., & Clara, M. (2011). Information technology implementation: Evidence
in Spanish SMEs. International Journal of Accounting and Information Management,
18(1), 39-57.
Rosa, D. & Purfini, A. P. (2019). Analysis effect quality of accounting information systems to
support company performance. IOP Conf. Series: Materials Science and Engineering, 662.
Saira, K., Zariyawati, M. A., & Annuar, M. N. (2010). Information system and firms’ performance:
The case of Malaysian Small Medium Enterprises. International Business Research, 3(4),
28-35.
Sajady, H., Dastgir, M., & Hashem, N. (2008). Evaluation of the effectiveness of ac

DOWNLOAD PDF

---

Back