Accounting Information and Value Relevance: Evidence from Selected Banks in Nigeria

Dennis Onyekachi Awa

doi:10.56201/jafm.vol.11.no7.2025.pg126.138

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Accounting Information and Value Relevance: Evidence from Selected Banks in Nigeria

Dennis Onyekachi Awa

Abstract

This study evaluates the effect of accounting information on value relevance of selected deposit money banks in Nigeria. Accounting information was measured with return on asset and return on equity while relevance indicators were share price and market capitalization. Annual reports of the three designated deposit money banks served as the primary source of data for this study which include Access bank Plc, Zenith bank Plc and United bank for Africa for periods from 2013 - 2022. The data were tested for normality using Shapiro-Wilk, F-statistics (ANOVA) and adopted Ordinary Least Square method on the decisions about the objective and hypotheses of the study. Findings revealed that Return on assets has a negative and insignificant effect on market capitalization of selected deposit money banks in Nigeria. Return on equity exerts insignificant positive effect on market capitalization of selected deposit money banks in Nigeria. Return on assets has negative but significant effect on share price of selected deposit money banks in Nigeria; and Return on asset has insignificant and negative effect on share price of selected deposit money banks in Nigeria. the Central Bank of Nigeria (CBN) should carry out an evaluation in Nigeria deposit money banks to identify the actual level of compliance to accounting information disclosure by banks; and that the CBN may need to undertake a thorough appraisal of the current accounting information disclosure in order to determine its efficacy in supporting banks' performance.

Keywords

Accounting informationvalue relevancedeposit money banks market capitalization

References

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Accounting Information and Value Relevance: Evidence from Selected Banks in Nigeria

Abstract

Keywords

References

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