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Accounting Information and Market Value of Quoted Manufacturing Companies in Nigeria: Effect of Net Cash Flows Per Share on Share Price

Jeremiah Patrick EDET, PhD, ACA, Raphael Sunday ETIM, PhD, FCA, FCNA, FCTI, Essien Ekerette AKPANUKO, PhD, Enobong Patrick UMOH, PhD, ACA, ACTI

Abstract

The study was conducted to evaluate the influence of accounting information on market value of quoted manufacturing companies in Nigeria. Items of transactions reported on financial statements are expected to influence shareholders’ wealth positively through improvement in share price of companies. This motivated the conduct of this study. Ex-post facto design was employed in the study because it required secondary data. Accounting Information (independent variable) was represented by Net Cash Flows Per Share (NCFPS). The dependent variable, Market Value (MV) was represented by share price (SP) while Asset Turnover Ratio (ATR) was chosen as a control variable for the study. The population of the study was Thirty- one (31) manufacturing companies whose shares were traded on Nigerian Exchange Group (NGX) based on the financial year of these companies. Twenty-Three (23) companies were selected as sample size for the study on the basis of availability of published financial statements. Data required were collected from the sampled companies from 2013 to 2024. Descriptive statistics and pooled panel linear regression statistical tools were used to analyze the data collected. The result of the analysis revealed that NCFPS had positive and significant influence on MV of quoted manufacturing companies in Nigeria. From the findings, the researcher concluded that accounting information had a positive and significant influence on market value of quoted manufacturing companies in Nigeria. It was recommended the managers of quoted manufacturing companies in Nigeria should ensure that stringent accounting policies are adopted continuously in their operations where more cash revenue is realised other than accumulating more trade receivables for the purpose of achieving positive net cash flows per share that will raise the market value of the firms.

Keywords

1Accounting Information [Net Cash Flows Per Share (NCFPS)]2Market Value and

References

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