VALUE RELEVANCE OF ACCOUNTING INFORMATION IN NIGERIA MANUFACTURING COMPANIES

Yemisi Funmilayo Bosun-Fakunle, Gbenga Ayodele ADEBAYO, Samson Adewale ADEDIRAN

Abstract


This study examines the value relevance of accounting information of listed
manufacturing companies in Nigerian Stock Market. The sample of this study
composed of thirty (30) manufacturing companies listed in the Nigerian Stock
Exchange (NSE) for a period of ten (10) years from 2005 to 2014 due to availability of data. Data and information for the study were gathered from published annual reports, fact book, and website of listed manufacturing companies in NSE from 2005 to 2014. The data were analyzed using simple regression. The results revealed that earning per share (EPS) significantly impact on share price while book value per share (BVPS) and return on equity (ROE) are relatively correlated with share price. Based on the findings, it was recommended amongst others that listed firms on the Nigerian Stock Exchange should prepare Simplified Investors' Summary Accounts (SISA) with emphasis on the most widely used accounting information along with the mandatory detailed financial statements to suit Nigerian peculiarities. Outcome of the study would be beneficial to the practitioners, academicians, policy makers and others.


Keywords


Value Relevance, Accounting Information, Manufacturing, Comparing, Sharing Price, Book value, Return on Equity

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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