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