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