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

Abstract

This study examined the effect of accounting information on and share price of listed non financial in Nigeria Exchange Group. The study reviewed all related works and used secondary sources of data with the use of expo facto research design of 95 listed non financial firms on the floor of NGX for the period 2012 to 2021. The data for the study which came from Nigerian Exchange fact book and the Central bank Bulletin were analyzed using Ordinary Least Squared (OLS). The findings from the analysis indicate that Earning per share and Net book value per share are positively and significantly related to share price of listed non financial firms in Nigeria. Also, On the basis of these findings, it was concluded that inflation is a key determinant of relevance and reliability of accounting information in NSE. By implication, the reliability of accounting information of listed companies for investment decision could be enhanced in the NSE when the changing prices of shares are identified, captured, presented and equally published in the financial information of such firms by the preparers of accounting information. The methods used for testing the information content of various accounting information is Ordinary Least Squared (OLS). The findings from the analysis indicate that accounting information has significant effect on share prices. It also revealed that RGDP has significant moderating role on the relationship between accounting information and share prices of listed non financial firms in Nigeria. On the basis of these findings, it was concluded that RGDP is a determinant for unlocking investment opportunities through accounting fundamentals in NGX. By implication, the reliability of accounting information for investment decision could be enhanced in the NGX when the changing prices of shares are identified, captured and presented in the financial information of such firms. Therefore, non financial firms should ensure that the published report c

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