Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Accounting Information and Firm Performance of Quoted Pharmaceutical Companies in Nigeria

Onukelobi-Emeka Chinwe Peace PhD, Okwuego Sopuruchukwu Peace PhD, Ngini Sufficiency Obiomachukwu PhD, Nwachukwu Clare Jaachimma

Abstract

This study examined the effect of accounting information quality on the performance of quoted pharmaceutical companies in Nigeria. Accounting information quality was proxied by relevance, timeliness, and reliability, while firm performance was measured using return on equity . The study adopted an ex post facto research design and utilized secondary data obtained from the audited financial statements of pharmaceutical firms listed on the Nigerian Exchange Group over the period 2020–2024. Data were analyzed using descriptive statistics and the Ordinary Least Squares regression technique. The findings revealed that accounting information quality significantly influences firm performance. Specifically, relevance and reliability exhibited positive and statistically significant effects on return on equity, while timeliness showed a weaker but significant relationship. The results indicate that improvements in the quality of financial reporting enhance firm performance and strengthen stakeholder confidence. The study concludes that the qualitative attributes of accounting information are critical drivers of firm performance and recommends that firms improve the relevance, timeliness, and reliability of financial reports to enhance financial outcomes.

Keywords

Accounting information qualityrelevancetimelinessreliabilityreturn on equitypharmaceutical companiesNigeria.

References

Adegboye, K. A., & Hanga, B. Y. (2018). Effect of firm attributes on financial reporting quality: Evidence from consumer goods companies in Nigeria. Journal of Financial Reporting and Accounting, 16(2), 99–116. Akadakop, I., & Mgbame, C. (2018). Timeliness and reliability trade-off in Nigerian accounting information. Journal of Business and Management, 10(1), 1–16. Aliyu, A. S. (2024). Accounting information quality and financial performance of quoted pharmaceutical companies in Nigeria. Journal of Banking Studies, 12(2), 45–67. Barth, M. E. (1994). Accounting as a language of business. Accounting Horizons, 8(1), 1–15. Chandra, A., & Kumar, R. (2020). The role of decision usefulness theory in financial reporting: An overview. Journal of Accounting and Finance, 15(4), 23–34. Emeni, F. K., Chinweuba, A. E., & Uwuigbe, O. R. (2016). Value relevance of accounting information: A study of listed companies in Nigeria. Banking and Finance Review, 18(2), 25–44. FASB. (1980). Statements of Financial Accounting Concepts No. 2. Norwalk, CT: Financial Accounting Standards Board. International Accounting Standards Board. (2010). Conceptual framework for financial reporting. London, UK: IASB. Macgregor, T. C., & Ibanichuka, E. A. L. (2021). Accounting information quality and firm performance of quoted oil and gas companies in Nigeria. Nigerian Journal of Accounting Research, 15(1), 22–38. Ohaka, M., & Okani, E. (2017). Financial reporting timeliness and firm value in Nigeria. Nigeria Journal of Finance, 9(1), 66–81. Okike, E., Adegbite, E., Nakpodia, F., & Adegbite, S. (2015). A review of internal and external influences on corporate governance and financial accountability in Nigeria. International Journal of Business Governance and Ethics, 10(2), 165–185. Onaolapo, A. R., Fasina, H. T., & Olayemi, O. O. (2022). Accounting information system and financial reporting quality of quoted service companies in Nigeria. International Journal of Business Information Systems, 27(4), 35–54. Schipper, K. (2007). Commentary on the decision usefulness framework. Accounting Horizons, 21(3), 263–270. Solomon, J. (2013). Corporate governance and accountability (4th ed.). Chichester, UK: John Wiley & Sons. Soyemi, K. A., & Luqman, S. O. (2018). Firm characteristics and financial reporting quality: Evidence from non-financial firms in Nigeria. Journal of Accounting and Auditing, 14(2), 70–88. Uwuigbe, U., Emeni, F. K., Uwuigbe, O. R., & Maryjane, C. (2016). IFRS adoption and accounting quality: Evidence from the Nigerian banking sector. African Journal of Accounting and Finance, 8(3), 112–130. Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Englewood Cliffs, NJ: Prentice Hall.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye